STMicroelectronics revenue beats on chip demand from car, phone makers

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STMicroelectronics posted a better-than-expected second-quarter revenue this week, as the Franco-Italian chipmaker benefited from strong demand for its chips used in smartphones to cars, and forecast an upbeat current quarter.

The company forecast third-quarter sales of $3.2 billion, higher than market estimates of $3.08 billion.

A wave of orders swept the semiconductor industry to cause a global shortage that stopped production lines at several automakers, propelling production capacity at STMicro’s plants. The company, whose customers include Apple and Tesla , increased its investment plan again for the year to $2.1 billion, from $1.28 billion in 2020.

STM, which competes with NXP Semiconductors, Analog Devices, and Texas Instruments, makes a range of chips that are widely used in mobiles, cars, 5G equipment and other electronic gadgets.

The Geneva-based company’s quarterly net revenue rose to $2.99 billion from $2.09 billion a year earlier, beating analysts’ estimates of $2.89 billion, according to IBES data from Refinitiv.

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