Bozotti was speaking to an assembled crowd of customers and press at the now traditional ST party in downtown Munich. The event takes place every two years during the Electronica exhibition and by convention the CEO provides a state-of-the-company or state-of-the-industry address and rallying call.

The always-elegant Bozotti was smiling but he indicated that the large-scale investments and divestitures made in 2007 and 2008 are enough for now. This year ST has acquired the wireless unit of NXP BV and is in the process of creating of 50:50 joint venture between it and Ericsson Mobile Platforms.

"We will not see acquisitions of similar size," Bozotti told the audience before adding, "But we may see acquisitions and divestitures to enhance the positions of business units."