ST(US:STM) Zheng Quan Shi Bao Wang·2025-10-23 11:48Core Viewpoint - STMicroelectronics' fourth-quarter revenue forecast of $3.28 billion is below analysts' expectations of $3.35 billion, raising concerns about the recovery of the mature semiconductor industry [1] - The company also announced a reduction in its 2025 capital expenditure plan to below $2 billion due to current market conditions [2] Group 1: Financial Performance - STMicroelectronics reported third-quarter revenue of $3.19 billion, exceeding analysts' expectations of $3.12 billion, but its operating profit of $180 million fell short of the forecast of $214.4 million [1] - The CEO indicated signs of market recovery, projecting full-year revenue for 2025 to be approximately $11.75 billion, reflecting a 22.4% growth in the second half compared to the first half [1] Group 2: Market Conditions - The semiconductor industry is facing challenges due to geopolitical tensions and economic uncertainties, impacting the automotive sector's recovery from previous inventory excesses [1] - Customers are reportedly reducing orders in response to increasing trade tensions and economic uncertainty, as highlighted by Texas Instruments' disappointing earnings forecast [1] Group 3: Strategic Developments - STMicroelectronics is implementing a localization strategy in China, focusing on expanding its own production capacity and strengthening partnerships with local suppliers [3] - The company has established a cost-effective and resilient supply chain in China, utilizing local equipment and materials suppliers [3] - STMicroelectronics has a significant presence in China, with nearly 5,000 employees, accounting for about 10% of its global workforce [2]