STMicroelectronics posts higher Q2 sales helped by automotive demand

(Reuters) -European chipmaker STMicroelectronics on Thursday projected improvement in third-quarter sales as it slightly beat market expectations for the second quarter, defying earlier downbeat statements by some of its peers.

STM said it expects third-quarter net revenues of $4.38 billion, a touch above the $4.32 billion it posted in the third quarter last year.

Chipmakers have been flagging weaker demand, with rival Texas Instruments saying earlier this week that some clients were cancelling orders, while Taiwan’s TSMC said that even booming AI chips have not offset weakness in the broader market.

NXP Semiconductors had, however, struck a more upbeat tone, helped by demand for chips from automakers as they make more electric vehicles (EVs) and develop driving assistance technology.

STM’s second-quarter sales rose 12.7% year-over-year to $4.33 billion, slightly above a consensus from Refinitiv data, which had expected $4.27 billion.

“The revenue performance continued to be driven by growth in Automotive and Industrial, partially offset by lower revenues in Personal Electronics,” said the company’s Chief executive Jean-Marc Chery in a statement.

The company also sharpened its full-year outlook, giving a more precise forecast than previously.

It now expects revenues in 2023 of $17.4 billion, give or take $150 million. In April, it guided for a range of 17.0 billion to $17.8 billion.

(Reporting by Olivier Sorgho; Editing by Jacqueline Wong and Kim Coghill)