By Nathan Vifflin
(Reuters) -STMicroelectronics said U.S. tariffs had so far not changed its conversations with customers, after the chipmaker forecast rising second-quarter sales from the yearly low seen in the first three months of 2025.
“We have not seen any panic from customers or immediate reaction,” President and CEO Jean-Marc Chery told analysts on Thursday.
But while STMicro is well equipped to face the potential tariffs, it is wary of their impact on global automotive production, he said.
“It’s urgent to wait and see, because adaptation of the supply chain or decision to modify or structurally change the supply chain is very heavy in terms of qualification, in terms of transfer of product, and so on,” Chery added.
He also said that STMicro could benefit from the tariff spat between the U.S. and China, as peers caught in the fight could lose market share to them.
“ST could be a new vendor solution, taking into account this tariff increase for American peers in China.”
STMicro’s U.S. peer Texas Instruments also forecast second-quarter revenue above Wall Street estimates on Wednesday, with hopes of cyclical recovery soothing tariff concerns for now.
Chipmakers exposed to the automotive and industrial markets, like STMicro, NXP and Siltronic, have faced a multi-year long slump in sales. That led STMicro’s operating income to collapse 99.5% year-on-year in the first quarter.
It forecast revenue of $2.71 billion in the second quarter, 16.2% lower than last year but above analysts’ expectations of $2.62 billion. The outlook does not factor in any impact from potential further changes to global trade policies.
“We believe the auto/industrial chip sector is at the early stages of a cyclical recovery from a deep trough, with improvement into H2-25 and 2026 regardless of macro-uncertainties,” Jefferies analysts wrote in a note.
STMicro did not provide a full-year guidance, but Chery said he expected revenue to be lower than last year.
First-quarter revenue was $2.52 billion, in line with STMicro’s own forecast and analysts’ estimates.
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi)
