STMicroelectronics reports a drop in demand from automotive

Global semiconductor manufacturer STMicroelectronics (ST) posted a Q2 2024 net revenue of US$3.23bn, a 25.3% drop from the same quarter in 2023. Net income also fell dramatically year-on-year from US$1.1bn to US$353m (-68%). This continues an overall financial decline for the company: in Q1 2024, it recorded revenues of US$3.5bn—19% lower than Q4 2023.

Jean-Marc Chery, President and Chief Executive of ST, stated in the 25 July report that “lower than expected revenues in Automotive” offset otherwise high revenues in the personal electronics segment. He put this disappointment forward as the reason for the company’s lacklustre H1 performance: “contrary to our prior expectations, […] Automotive demand declined.”