Order decline, STMicroelectronics latest performance of 4.28 billion yuan

Source: Global Electronics Market

    Due to slower growth in the automotive industry and further reduction in orders from the industrial sector, another semiconductor giant‘s sales were lower than expected.

    On January 26th, European chip manufacturer STMicroelectronics released its latest quarterly financial report. STMicroelectronics had a net income of $4.28 billion in the fourth quarter of 2023, a decrease of 3.2% year-on-year, lower than the average analyst expectation of $4.3 billion; Net profit in the fourth quarter decreased by 14% to $1.08 billion; Operating profit decreased by 20.5% to 1.02 billion US dollars. STMicroelectronics‘s net income for the full year of 2023 jumped from $16.13 billion in 2022 to $17.29 billion.

    Jean Marc Chery, CEO of STMicroelectronics, said, "Compared to the third quarter, our customer orders decreased in the fourth quarter. We continue to observe stable terminal demand in the automotive industry, personal electronics products have not seen significant growth, and industrial demand has further declined."

    Due to weak demand for automobiles and further decline in orders from the industrial sector, the fourth quarter revenue of STMicroelectronics was slightly lower than analyst expectations. In addition, STMicroelectronics estimated the first quarter revenue to be $3.6 billion, lower than the same period last year‘s $4.25 billion and 11% lower than analyst expectations. By 2024, STMicroelectronics will have a net capital expenditure of approximately $2.5 billion and a target annual revenue of $15.9 billion to $16.9 billion.