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STMicroelectronics revenue beats on chip demand from car, phone makers

Credit: REUTERS/DENIS BALIBOUSE

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

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STOCKHOLM, July 29 (Reuters) - STMicroelectronics STM.BN posted a better-than-expected second-quarter revenue on Thursday, 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 AAPL.O and Tesla TSLA.O, increased its investment plan again for the year to $2.1 billion, from $1.28 billion in 2020.

STM, which competes with NXP Semiconductors NXPI.O, Analog Devices ADI.O, and Texas Instruments TXN.O, 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.

(Reporting by Supantha Mukherjee, European Technology & Telecoms Correspondent, based in Stockholm, Editing by Helena Soderpalm and Sherry Jacob-Phillips)

((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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