STMicroelectronics Q3 revenue of US$3.2 billion is below than expected: Report

STMicroelectronics announced its third-quarter financial report, with revenue of US$3.2 billion, slightly lower than analysts’ expectations, but a year-on-year increase of 19.9% ​​year-on-year and a quarter-on-quarter increase of 6.9%; net profit of US$474 million was higher than the previous year, 412 million US dollars in the first quarter.

STMicroelectronics has a chip assembly plant in Muar, Malaysia, which was affected by the country’s severe third wave of epidemic and blockade measures. CEO Jean-Marc Chery said, “ Our factory has gone through a period of partial or complete closure and gradually restored 100% of its production capacity in the third quarter .”

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Moreover, a more severe epidemic than expected has hit ST’s automotive business, and revenue in the quarter was lower than expected. However, Jean-Marc Chery said that strong global demand and its customer engagement plan in the field of personal electronic products boosted revenue Performance, offset the impact of the automotive business.

Among the three business divisions, the analog, mixed-signal, and sensor divisions performed best, with sales increasing by 27.1% year on year. Automotive and discrete device products followed closely, with sales increasing by 18.1% year-on-year, while sales of MCU and digital products increased by 12.9% year-on-year.

STMicroelectronics said that chip demand is expected to continue until 2023. The company’s fourth-quarter revenue is expected to reach US$3.4 billion, an increase of 4.9% year on year. The median annual net income is approximately US$12.6 billion, an increase of 23.3% year on year. The annual capital expenditure plan is still fixed at US$2.1 billion.