Stmicroelectronics takes a new slap

Turnover in the second quarter was $ 2.8 billion, a decline of 14.4% over a year but up from the first quarter. However. Therefore, it is elsewhere that the rub: net loss reaches $ 97 million, weighed down by 190 million depreciations and restructuring charges linked to the industrial redeployment plan announced in October 2024. Similarly,

Stmicroelectronics details its activity according to two axes: by product line and by final market. Consequently, In terms of products, activity remains dominated by analog circuits, MEMS and sensors (AM&S), which represent 41 % of turnover. In addition, These components are used in particular to process continuous electrical signals stmicroelectronics takes new slap (temperature. Moreover, pressure, sound), MEMS (mechanical micro-capteur) detect movements or vibrations (as in airbags or smartphones), and sensors measure the environment (acceleration, humidity, light). Nevertheless, The embedded solutions (EMP). Furthermore, which count for 31 % of turnover, mainly include microcontrollers and microprocessors integrated into an infinity of everyday objects: cars, industrial equipment, domestic devices, connected objects. These chips pilot logical or automatic functions.

Then come power and discreet products (P&D) to 16%, which include transistors, diodes and power modules to manage, convert and distribute electricity in electronic systems. They are useful for industrial applications, inverters, power supplies and electric motorization.

Finally, the RF and optical components (RF & OC), for 12 % of income, cover radio frequencies (wireless communications, Wi-Fi, Bluetooth) and optics (data transmission by light), widely used in telecoms or the Internet of Objects (IoT).

If we stmicroelectronics takes new slap look at the end customers side, the automobile remains the main outlet with 40 %of income, ahead of the industrialist (22 %) and the consumer electronics (23 %), while communication equipment and peripheral computing close to 15 %.

Let’s go back to the results. Over a year. all the segments are in the red but it is the automobile that is backing up the most. The heart of the profession remains under pressure with the trade war which disorganizes supply chains. creates persistent uncertainty on volumes. Decreases compared to last year should continue in the third quarter. The margins should be assigned by costs linked to unused capacities.

Analysts are not mistaken. At Barclays, it is emphasized that the absence of operational lever despite the resumption of volumes.

Dependence on the automotive segment (more than 40 % of turnover) clearly plays against the group at the stmicroelectronics takes new slap moment. Several manufacturers (Renault, Stellantis, Tesla) have recently revised their downward goals. Tesla, which represents around 6 % of STM income, also warned its investors from an upcoming slowdown. Added to this are pricing uncertainties and a potential loss of market share in carbide silicon in front of semiconductor. It will be understood. visibility is low, especially since criticisms are fused on group management, more than 27 % owned by France and Italy. The Italian government. in particular, has raised the tone in the face of what it perceives as a lack of strategic readability. Tensions have even appeared about governance, with the recent rejection of an administrator proposed by Rome. The title has already lost 35 % in one year.