ST STMicroelectronics Q2 revenue growth 12.7%, auto business growth for four consecutive quarters_News_ALL NEW SEMI (ANSC)

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ST STMicroelectronics Q2 revenue growth 12.7%, auto business growth for four consecutive quarters

2023-07-31

STMicroelectronics held the financial statement explanation meeting for the second quarter of 2023. Data shows that STMicroelectronics's net income in the second quarter was 4.33 billion US dollars, up 12.7% year on year. Gross margin is 49%, operating profit margin is 26.5%, and net profit is $1 billion; In the first half of the year, the net income was US $8.57 billion, up 16.1% year on year, the Gross margin was 49.3%, and the net profit was US $2.05 billion. Jean Marc Chery, president of STMicroelectronics, said that the net income in the second quarter increased by 12.7% year on year, mainly due to the continuous strong growth of automobile and industrial businesses.

Previously, Texas Instruments and NXP Semiconductors also announced strong results in their respective automotive sectors, as the shift of the automotive industry to electric vehicles stimulated chip demand.

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STMicroelectronics's Automotive and Discrete Division (ADG) is its largest division. Its revenue increased 34% last quarter to $1.96 billion, achieving four consecutive quarters of growth. The revenue of the Simulation, MEMS, and Sensor Group (AMS) departments was $940 million, a year-on-year decrease of 15.7%; The revenue of the Microcontroller and Digital Integrated Circuit Group (MDG) department was $1.427 billion, a year-on-year increase of 13%.

Jean Marc Chery, CEO of STMicroelectronics, said, "The revenue performance continues to be driven by the growth of automobile and industrial businesses, partially offset by the decline of personal electronic business revenue."

The company expects a net income of 4.38 billion US dollars in the third quarter of 2023, a year-on-year increase of 1.2% and a month on month increase of 1.1%; The Gross margin is expected to be 47.5%. It is estimated that the annual revenue in 2023 will be 17.4 billion dollars, and the Gross margin will exceed 48.0%.

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