Por Mathieu Rosemain
PARIS (Reuters) – Demand for semiconductors will exceed STMicroelectronics’ capacity through 2022, the head of the French-Italian chip maker said on Wednesday, as disruptions from Covid-19 and the war in Ukraine hit the hardest. sector.
The combination of conflicts and renewed locks has already taken a toll on some of its biggest competitors, such as Texas Instruments, raising concerns about STMicro’s ability to deliver on set targets.
“Our sales and operations plan shows our fully saturated capacity above 90% for the rest of the year,” Chief Executive Jean-Marc Chery told analysts on a conference call.
STMicro missed two weeks of production at its factory in Shenzhen, China, in the first quarter because of a lockdown, Chery said. But the group was able to transfer some production to other facilities, helping to exceed market expectations for microcontroller sales.
Chery said registered chip orders were 30% to 40% above the capacity of the group, whose biggest customers include Apple and Tesla.
STMicro said its quarterly sales were just above its targets of $3.55 billion, with a gross margin of 46.7%, and topped the $3.49 billion average analyst estimate compiled by Refinitiv.
Earnings per share were 79 cents, above the average Refinitiv analyst estimate of 71 cents per share.
STMicro predicted that its 2022 revenue will be in the range of $14.8 billion to $15.3 billion. The company expects second-quarter net income to be about $3.75 billion, up 5.8% from the first quarter.