Chipmaker STMicro's Q4 forecast hit by weak auto sales

Company Overview - STMicroelectronics forecasts fourth quarter sales of $3.28 billion, which is an increase from $3.19 billion in the previous quarter but below the analyst expectation of $3.34 billion [1] - The company has reduced its capital expenditure plans for 2025 to slightly below $2 billion, down from a previous range of $2 billion to $2.3 billion, due to weakness in silicon carbide demand [2][3] Sales and Market Performance - Lower sales to a significant electric vehicle customer, likely Tesla, have negatively impacted the company's outlook [3] - STMicroelectronics' shares fell by 7.9%, making it the worst performer among France's CAC 40 and Italy's FTSE MIB indexes [2] Industry Context - The semiconductor industry, particularly companies like STMicroelectronics, Texas Instruments, and NXP, is experiencing a prolonged sales slump due to low demand, high inventories, and geopolitical disruptions [5] - Analysts indicate that while the industry is in an up-cycle, it is characterized as "very muted" [6] - STMicroelectronics' third quarter results were supported by stronger sales of imaging sensors and microcontrollers, but faced challenges in power and discrete products for automotive and industrial applications [6]