April 30, 2024 /SemiMedia/ -- According to STMicroelectronics’ financial report for the first quarter of 2024, its net revenue for the quarter was US$3.465 billion, a year-on-year decrease of 18.4% and a month-on-month decrease of 19.1%; gross profit margin was 41.7%, reaching US$1.444 billion, a year-on-year decrease of 31.6% and a month-on-month decrease of 26%; net profit was US$513 million, a year-on-year decrease of 50.9% and a month-on-month decrease of 52.4%.

STMicroelectronics said that taking into account weak demand in the automotive industry, it has lowered its full-year revenue forecast for 2024 from a range of US$15.9 billion to US$16.9 billion to a range of US$14 billion to US$15 billion. In addition, gross profit margin is expected to remain at 40%.

STMicroelectronics and the broader chip industry have been grappling with sluggish demand for consumer electronics for months as markets for smartphones and computers slow. In contrast, the automotive semiconductor field has been very stable as the automotive industry has been seeking smaller and more energy-efficient chips. However, this trend is currently changing.

Jean-Marc Chery, president and CEO of STMicroelectronics, said that both net profit and gross profit in the first quarter were below the midpoint of the business forecast range, mainly due to lower revenue in the automotive and industrial sectors, but this was offset by higher personal electronics revenue. compared with previous expectations, demand for automotive semiconductors slowed down in the first quarter and entered a deceleration stage.