Euro chipmaker STMicroelectronics saw revenue and net income slump in Q2 of this year, blaming low demand in the automotive sector while orders elsewhere failed to meet expectations, in a hint that the semiconductor industry is still in a rough patch.
Despite this, president and CEO Jean-Marc Chery tried to strike an optimistic note, saying in a statement that net revenues were above the midpoint of STMicro's business outlook range, driven by higher revenues in its Personal Electronics segment, and that its gross margin was in line with expectations.
"We will now drive the company based on a plan for FY24 revenues in the range of $13.2 billion to $13.7 billion. Within this plan, we expect a gross margin of about 40 percent," Chery said. During Q2, the company paid cash dividends to its stockholders totaling $73 million and made an $88 million share buyback, completing the share repurchase program it launched in July 2021.A chip off the old block: The 200mm fab supply chain breaker