Europe’s leading semiconductor manufacturer reports a fifth consecutive quarter of declining revenues. The group embarks on a vast reorganization and savings plan, targeting at least $500 million annually by the end of 2027.
Nvidia’s exceptional results on AI chips increasingly conceal the depth of the crisis affecting the rest of the industry. In the front line, Franco-Italian STMicroelectronics is taking the full brunt of the slowdown in demand, particularly in the industrial and automotive markets. One week follows another for Europe’s leading chipmaker, which recorded its fifth consecutive quarterly revenue decline between July and September. Sales, at $3.25 billion, were down 26.6% year-on-year. Net income plummeted by 67.8% over the quarter, from $1.09 billion to $351 million.
It’s true that the manufacturer and its CEO, Jean-Marc Chéry, had warned back in January that 2024 would be a turnaround year, with a slowdown in order intake and high customer inventories. But like others in the industry, he probably hadn’t…
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