French-Italian chipmaker STMicroelectronics posted an increase in its full-year net revenue guidance on Thursday, benefitting from improved market conditions, new products, as well as more engaged customer programmes.
Over 60% of the company’s revenue is generated from Asia and Oceania, having numerous customers in the regions, including Samsung and Huawei.
The company currently sees sales in 2020 hitting between $9.25 billion (€7.98 billion) and $9.65 billion (€8.33 billion), significantly higher than the $8.8 billion (€7.6 billion) and $9.5 billion (€8.2 billion) which were previously indicated.
During the second half of the year, sales are expected to grow by $610 million (€526.52 million) to $1.01 billion (€870 million), much steadier than the $340 million (€293.47 million) to $1.04 billion (€900 million) that were hinted at beforehand.
Additionally there is an anticipated 17.4% growth in revenue during the third-quarter.
During the second-quarter, the Geneva-based group managed to report sales greater than its own guidance, with just a 6.5% drop in sales instead of the previously anticipated 10.3% decrease, mainly being brought about by increases in revenue in its Microcontrollers segment.
Its capital expenditures for 2020 are expected to be around $1.2 billion (€1.04 billion), which was at the positive upper end of the group’s previous guidance.
During February and March, the stocks of STMicroelectronics managed to fall by almost 50%, yet it recovered steadily afterwards, increasing by around 10% by July.
STMicroelectronics is Europe’s largest semiconductor chip maker when it comes to revenue, also having numerous facilities in different countries, mainly Italy and France, but also having one in Singapore, Tunisia, and also in Malta, at the outskirts of Kirkop.