FILE PHOTO: A logo is pictured on the factory of STMicroelectronics in Plan-les-Oautes near Geneva, Switzerland, December 6, 2016. REUTERS/Denis Balibouse
(Reuters) – Franco-Italian chipmaker STMicroelectronics’ fourth-quarter results beat analysts estimates on Thursday as demand for chips dedicated to the next generation of smartphones and low-emission cars helped offset a slowdown in more traditional products.
STMicro’s results reflect a wider industry move toward more sophisticated semiconductors within the telecoms, auto and manufacturing sectors, as equipment makers gear up for the deployment of the new mobile Internet infrastructure, or 5G, and increased demand for cleaner vehicles.
The supplier to iPhone maker Apple and electric carmaker Tesla said fourth-quarter net revenue rose by 7.9% from the previous quarter to $2.75 billion, above STMicro’s targets.
The gross margin for the period stood at 39.3 percent. Shares were up about 4% in early trading.
Source Reuters Tech News