StMicroelectronics, profit almost doubled in 2022: rally in Borsa- Corriere.it

The Italian-French microprocessor giant StMicroelectronics has replenished its revenues and doubled its profit in 2022 with a real bang in Piazza Affari. Revenues rose 26.4% from 12.76 to 16.13 billion dollars (from 11.69 to 14.77 billion euros), well above the estimates indicated last January of 14.8 to 15.3 billion dollars (between 13.6 and 14.07 billion euros), while operating profit jumped by 83.5% to 4.4 billion dollars (4.06 billion euros) and net income climbed by 98 % to 3.96 billion dollars (3.63 billion euros). The accounts, better than analysts’ estimates, pushed the stock up by 9% to 43.2 euros after an extension of the pre-opening auction without being able to make the price, to then close with an increase of 8, 2% to 42.67 euros. Results that were in the air given the accounts of the rival Asm last week.

The forecast for 2023

But what convinced the market today were the words of the president and CEO Jean-Marc Chery, who forecasts revenues for 2023 between 16.8 billion dollars and 17.8 billion dollars (between 15.39 and 16.3 billion euros) underlining the strong demand from our customers and the increased manufacturing capacity of the group. It plans to invest about $4 billion (€3.66 billion) this year primarily to expand 300mm wafer mills and silicon carbide manufacturing capacity. At first, progress is consistent with the roadmap, according to Chery.

The Agrate Brianza and Catania plants

The objectives for the Agrate Brianza plant (in the province of Monza Brianza, which looks like California here), already operational since last year, foresee the completion of the machinery by the end of 2025 to reach 5 thousand units produced weekly from the current thousand. The full production capacity of 8,000 wafers will then be reached at the end of 2026. Estimates on the production of silicon carbide in Catania have also been confirmed, the latter element being essential for electric cars. More generally, Chery said he was confident in the objectives of the 2022-2027 Plan presented last May, with revenues of 20 billion dollars (18.34 billion euros). After explaining that there could be a revision of the Plan in 2024 when we will have more elements of understanding, the manager confirmed that the group’s growth will be organic. I can’t say that we won’t make acquisitions during 2023 – he explained – but if we do, they will be aimed at completing our portfolio of skills and technologies.

Attention to the automotive sector

Meanwhile Stmicro will continue to pay attention to the auto sector and industry as a wide range supplier with a selective approach on personal electronics, smartphone components and computer peripherals. We started the year with a backlog higher than at the beginning of 2022, indicated Chery, who looks with confidence to China, which is accelerating fantastically in smart mobility, electrification of cars, robots and in renewables, sectors hungry for microprocessors.