ST reports Q1 sales of $3bn; plans $2bn Capex spend
STMicroelectronics (ST) has reported revenues of $3.02 billion, up 35.2% year on year and net income of $364 million in Q1 2021.
The company also announced that it would spend $2bn in Capex to increase its manufacturing capability to meet increased demand and the company’s strategic initiatives.
Jean-Marc Chery (pictured), STMicroelectronics CEO described current global semiconductor manufacturing capability as “saturated.”
“This situation will continue for the next 6 months and probably through the end of 2021,” he added.
He indicated that ST would focus its efforts on silicon carbide, power and microcontrollers for automotive applications.
On a sequential basis, net revenues decreased 6.8%. Automotive and Power Discrete products and Microcontrollers increased sequentially, partially offset by Personal Electronicsproducts.
“All three product groups achieved double-digit growth,” reported Chery. Automotive and Discretes posted $.1043bn revenues, Analogue, MEMs and sensor sales were $1.083bn and Microcontrollers and Digital ICs posted $886m in revenues.
Chery expects Q2 revenues of $2.9 billion, an increase of 39% year-on-year, and a 3.8% decrease sequentially due to usual seasonality in Personal Electronics.
By location, 67% of ST product was shipped to Asia-Pacific, with EMEA making up 21% and the Americas 12%.
The company’s top 10 OEMs represent 46% of customer type. Distribution accounts for 33% and other OEMs 21%.
Revenues at region of origin were the Americas at 41%, EMEA at 26% and Asia-Pacific at 33%.
Added Chery, “We will drive the Company based on a plan for FY21 revenues of $12.1 billion, plus or minus $150 million, a year-over-year increase of 18.4% at the mid-point. This growth is expected to be driven by strong dynamics in all end markets we address and our engaged customer programs.”