European chipmaker STMicro posts Q4 sales rise on strong consumer demand
Add BT as a preferred source
EUROPEAN chipmaker STMicroelectronics (STMicro) beat fourth-quarter sales expectations despite challenging economic conditions, the company said on Thursday (Jan 26).
It added that it benefited from strong consumer demand, with its net revenue rising to US$4.42 billion from US$4.32 billion in the previous quarter. Analysts had expected, on average, sales of US$4.32 billion, based on data from financial-analysis platform Refinitiv Eikon.
STMicro, whose biggest clients include iPhone-maker Apple and electric carmaker Tesla, hit its revenue target for the year with US$16.1 billion.
Its fourth-quarter diluted earnings per share of US$1.32 beat analysts’ average estimate of US$1.09, the data showed.
On Wednesday, rival company Texas Instruments forecast first-quarter revenue and profit that were below Wall Street expectations.
Jean-Marc Chery, chief executive of STMicro, said that strong demand from automotive and industrial customers had bolstered the company’s sales.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Citing strong demand and increased manufacturing capacity, he added that the company expected a full-year revenue between US$16.8 billion and US$17.8 billion.
The company had previously targeted a full-year revenue of US$20 billion by 2027.
It said that it had spent US$3.52 billion on capital expenditure in 2022, and planned to raise that figure to about US$4 billion this year, primarily to increase its manufacturing capacity.
Its net income rose to US$1.25 billion, up 12 per cent from US$1.1 billion in the previous quarter. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
