“Key drivers for global demand for chips, such as iPhone maker Apple which is one of STMicro’s top clients, have signaled a slowdown in sales from China. That has fueled concerns that the sector could spiral downwards,” Rosemain and Barzic report. “Asian clients who buy STMicro’s microcontrollers, mass-market chips found in washing machines and microwave ovens, are also using current inventories rather than making new orders, thereby hitting sales further.”
Rosemain and Barzic report, “Chery said in the call that he expected this negative impact on inventories to end in the second quarter.”
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MacDailyNews Take: Currently, shares of STMicroelectronics are up €1.14 (+9.12%) to €13.64.