In the wake of sluggish demand from automakers and a notable decrease in orders from laptop and phone manufacturers, European chipmaker STMicroelectronics has revised its full-year sales forecast downwards. The company, boasting clients like Tesla and Apple, announced a revised revenue projection for 2024, anticipating figures ranging between $14 billion to $15 billion. This adjustment marks a substantial dip from its earlier estimation of $15.9 billion to $16.9 billion.
Analysts surveyed by LSEG had predicted a revenue of $16.1 billion for the year, signifying a discernible deviation from STMicro’s revised outlook. This move reflects broader challenges within the semiconductor industry, particularly amidst the prevailing slowdown in the automotive sector. STMicro’s downward adjustment may serve as a bellwether for potential woes looming over the chip sector, amplifying concerns about the stability of the global technology supply chain.