MENU

ST sees slower growth for 2023, maintains capital expenditure

ST sees slower growth for 2023, maintains capital expenditure

Business news |
By Nick Flaherty



Despite a year of 26% growth and capacity sold out for 2023, STMicroelectronics is also highlighting the coming slowdown in the semiconductor market.

ST reported fourth quarter net revenues of $4.42 billion and profits of $1.25 billion, bringing the year over $16bn. The company is also increasing its capital expenditure for its 300mm fab in Crolles, France and for silicon carbide fab and substrate plant in Catania, Italy

“FY22 revenues increased 26.4% to $16.13 billion, driven by strong demand in automotive and industrial,” said Jean-Marc Chery, STMicroelectronics President & CEO.. “We invested $3.52 billion in capex while delivering free cash flow of $1.59 billion. Our first quarter business outlook, at the mid-point, is for net revenues of $4.20 billion, increasing year-over-year by 18.5% and decreasing sequentially by 5.1%.”

“In 2023 we will drive the company in the range of $16.8 to $17.8bn, representing growth of 4 to 10% over 2022,” he said. “Automotive and industrial will be the key growth drivers and we plan to invest $4bn in capex, 80% for the increase in the 300mm fab and SiC including the substrate initiative, the remaining 20% is for R&D and laboratories.”

“It is clear that all areas related to automotive and B2B industrial [including power and automotive microcontrollers] our capacity is fully booked for the year,” said Chery.

 “2022 was marked by strong demand in automotive and industrial, with continuing shortages and capacity constraints but softening in computer peripherals and personal electronics,” he said. “Inventory is more balanced and lead times are starting to reduce but we are still capacity constrained on some microcontrollers for industrial and personal electronics.”

With the first substrates now being produced in-house in Catania, the company is also aiming to grow its SiC business from $700m in 2022 to over $1bn in 2023, says Chery. He expects to have 40% of the substrates internally sourced by the end of 2024.

www.st.com

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News

Share:

Linked Articles
10s