Automakers' demand helps STM weather softening chip market

Belgique Nouvelles Nouvelles

Automakers' demand helps STM weather softening chip market
Belgique Dernières Nouvelles,Belgique Actualités

European chipmaker STMicroelectronics on Thursday forecast higher third-quarter sales as demand from automakers helped it beat revenue forecasts in the second quarter, even as it flagged higher inventories in a sign of a weaker chip market.

"You know that smartphones this year overall will decrease," STM's Chief Executive Jean-Marc Chery said in a call with analysts. "The inventory correction in personal electronics is going on, will still continue in Q3 as well."

The company expects third-quarter net revenue of $4.38 billion, up 1.2% from a year earlier, which JPMorgan analysts said was slightly above consensus estimates. However, the brokerage noted end-quarter inventories were 20.7% above the three-year seasonal average.Automakers' push to make electric vehicles and develop driving assistance technology have eased challenges in the semiconductor sector also grappling with U.S.-China

 

Belgique Dernières Nouvelles, Belgique Actualités



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