Chip Demand Remains Strong
STMicroelectronics on Thursday (27th) reported a nearly 30% increase in last-quarter net profit to $750 million on the back of strong demand for semiconductors, and announced it would double its capital spending this year to $3.6 billion to expand production capacity.
Shares of STMicroelectronics (STM-US) were up nearly 5% at $46.52 in premarket trading on Thursday.
According to the financial report, STMicroelectronics reported a net revenue of US$3.56 billion in Q4, an annual increase of 9.9%, an EPS of US$0.82, and a gross profit margin of 45.2%, all of which were better than market expectations. Overall, ST’s full-year net profit reached $2 billion, an increase of 81% year-on-year.
In response to strong demand, STMicroelectronics said it plans to double its capital expenditures this year to $3.4 billion to $3.6 billion, doubling from $1.8 billion the previous year, including the first production line at the Agrate 300mm fab in Italy. String.
Looking ahead, STMicroelectronics expects that the median of this year’s Q1 net revenue forecast range is US$3.5 billion, and the gross profit margin is estimated to remain at 41-45%. An annual increase of 20%, falling between 14.8 billion and 15.3 billion US dollars.