STMicroelectronics plans hike in Capex to $4 bn

STMicroelectronics, one of the world’s largest semiconductor companies, said it is planning Capex of $4 billion in 2023, primarily to increase manufacturing capacity, as against $3.52 billion it spent on Capex in 2022.
STMicroelectronics jobSTMicroelectronics, which has 14 main manufacturing sites, will increase its 300mm wafer fabs and silicon carbide manufacturing capacity including substrate initiative.

STMicroelectronics reported revenues of $4.42 billion, gross margin of 47.5 percent, operating margin of 29.1 percent and net income of $1.25 billion in Q4 2022.

STMicroelectronics posted revenues of $16.13 billion, gross margin of 47.3 percent, operating margin of 27.5 percent and net income of $3.96 billion in 2022.

STMicroelectronics is targeting revenues of $4.20 billion and gross margin of 48 during the first quarter of 2023. The semiconductor company expects full-year revenue of $16.8 billion to $17.8 billion in 2023.

The company has previously targeted full-year revenue of $20 billion by 2027.

STMicroelectronics has revealed that its top customers include Apple, Intel’s Mobileye, Bosch, Samsung, Continental, SpaceX, HP, Tesla, Huawei and Vitesco in 2022.

Strong demand from automotive and industrial customers had bolstered sales, STMicroelectronics CEO Jean-Marc Chery said in its earnings report.