ST sees 7% growth for 2023

ST sees 7% growth for 2023

Business news |
By Nick Flaherty

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STMicroelectronics is predicting revenues of $17.3bn for 2023, up 7.3% on the previous year.

This growth for ST comes as other analog and mixed signal chip makers such as TI are seeing a dip in business.

ST reported third quarter net revenues of $4.43bn with profits of $1.09bn, driven by the automotive business. The consumer business fell. The company is predicting Q4 revenue of $4.3bn, down on the previous year but with a slightly increased profit margin.

“Q3 net revenues of $4.43 billion came in above the midpoint of our business outlook range, and Q3 gross margin of 47.6% was slightly above guidance,” said Jean-Marc Chery, ST President & CEO, commented: “Q3 net revenues increased 2.5% year-over-year. As expected, the revenue performance was driven mainly by continued growth in Automotive, partially offset by lower revenues in Personal Electronics.”

“Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.30 billion, declining year-over-year and sequentially by about 3%; gross margin is expected to be about 46%. The midpoint of this outlook translates into full year 2023 revenues of about $17.3 billion, representing 7.3% year-over-year growth and a gross margin of about 48.1%.”

However this is slightly lower than the guidance earlier in the year on the path to its target revenues of $20bn between 2025 and 2027.

The company is set to complete its silicon carbide (SiC) wafer factory and integrated 200mm wafer pilot line in Catania, Italy, over the coming months to meet the increased demand for SiC power chips in automotive powertrain designs.

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