European chipmaker STMicro posts Q4 sales rise on strong consumer demand

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.

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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