STOCKHOLM: Franco-Italian chipmaker STMicroelectronics (STM.BN) reported Thursday’s second-quarter revenue that exceeded analysts’ expectations, benefiting from solid demand for its smartphones and car chips, and raised its full-year outlook.
STMicro raised its 2022 revenue forecast to between $15.9 billion and $16.2 billion, up from $14.8 billion to $15.3 billion. It also forecasts third-quarter net revenue of approximately $3.81 billion, beating estimates of $3.81 billion.
Chipmakers such as STMicro have seen high demand for their products as the pandemic has fueled the use of smartphones and computers. But research firm Gartner predicted a slowdown in growth later this year and a slump in chip demand next year.
Next to STM’s existing plant in Crawls, the facility will create approximately 1,000 new jobs and help STMicro reach its goal of increasing revenues by over $20 billion.
The Geneva-based company’s quarterly net revenue rose to $3.84 billion from $3.0 billion a year ago, beating analysts’ estimates of $3.69 billion, IBES data from Refinitiv showed.
Its diluted earnings fell to 92 cents per share, beating an estimated 76 cents a share.