November 5, 2024 /SemiMedia/ — European chipmaker STMicroelectronics (ST) has lowered its revenue forecast for the third time this year, citing weak demand from industrial customers. The company noted that growth for its largest division now relies on expanding its presence in China. Alongside other automotive chipmakers such as Texas Instruments and Melexis, ST is focusing on the Chinese electric vehicle market to drive growth, as current clients cut orders due to high inventory levels and declining car demand.

As Europe’s largest chipmaker by revenue, with clients including Tesla and Apple, ST has traditionally been more focused on Western markets. However, CEO Jean-Marc Chery emphasized on a conference call that ST needs to increase its market share in China, despite losing ground there this year. Chery added that over the next three years, the company's growth, particularly in its Power & Discrete and Analog segments, will hinge on its ability to capture a larger portion of the Chinese market.

ST is also looking to enter the artificial intelligence sector, a space where automotive-focused chipmakers have had limited traction. Chery mentioned a recent design win involving silicon and silicon carbide products for a Taiwanese supplier of power units for AI server infrastructure. These chips, based on silicon carbide, will help power AI processors from companies like Nvidia and AMD.