ST sees Q3 recovery: Page 2 of 2

July 23, 2020 // By Nick Flaherty
ST fab
Revenue for STMicroelectronics was up slightly despite the Covid-19 pandemic closing car factories and the company sees the market recovery, says chief executive Jean-Marc Chery.

impact in Q2 and none in Q3 and some impact in Q4 that is already in the guidance.”

In automotive, there is significant growth in L2 and L3 levels of autonomy using ST’s image sensors he says. “We expect in 2021 one third of cars produced will use ST imaging. Our partnership with Mobileye shows a very good dynamic in Q2.”

The closures and slowdown also means inventory in distribution increased. “During the second quarter our inventory increased as one of our priorities was getting production back so it rose to 129 days,” said Lorenzo Grandi, chief financial officer of STMicroelectronics. “In H2 we will continue to monitor the inventory and in Q3 I expect the number of days to go down to 115 to 120 days and then to 95 to 100 days,” he said.

Chery reiterated at the $12bn target for revenues will be achieved in the next three years. The company will spend $1.2bn on capital expenditure, up from $500m during the pandemic.

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