STMicroelectronics Posts Increased Q2 Gross sales Helped by Automotive Demand

(Reuters) -European chipmaker STMicroelectronics
on Thursday projected enchancment in third-quarter gross sales because it barely beat market expectations for the second quarter, defying earlier downbeat statements by a few of its friends.

STM stated it expects third-quarter internet revenues of $4.38 billion, a contact above the $4.32 billion it posted within the third quarter final yr.

Chipmakers have been flagging weaker demand, with rival Texas Devices saying earlier this week that some purchasers have been cancelling orders, whereas Taiwan’s TSMC stated that even booming AI chips haven’t offset weak point within the broader market.

NXP Semiconductors had, nonetheless, struck a extra upbeat tone, helped by demand for chips from automakers as they make extra electrical autos (EVs) and develop driving help know-how.

STM’s second-quarter gross sales rose 12.7% year-over-year to $4.33 billion, barely above a consensus from Refinitiv knowledge, which had anticipated $4.27 billion.

“The income efficiency continued to be pushed by development in Automotive and Industrial, partially offset by decrease revenues in Private Electronics,” stated the corporate’s Chief govt Jean-Marc Chery in an announcement.

The corporate additionally sharpened its full-year outlook, giving a extra exact forecast than beforehand.

It now expects revenues in 2023 of $17.4 billion, give or take $150 million. In April, it guided for a spread of 17.0 billion to $17.8 billion.

(Reporting by Olivier Sorgho; Modifying by Jacqueline Wong and Kim Coghill)

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