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Milan - STMicroelectronics is considering reducing its workforce by as much as about 6 per cent through early retirements and attrition, according to people familiar with the matter, as the Franco-Italian chipmaker confronts a prolonged demand slump in the industrial and auto sectors.
The job cuts under discussion, which could be announced as soon as this month, are in the range of 2,000 to 3,000 workers and will affect its operations in both Italy and France, according to the people. The decision is not final and the scale of the reductions is still under review, they added.
STMicro was formed in a merger of France and Italy’s state-owned chipmakers in 1987 and is considered a strategic enterprise by both countries. It supplies companies such as Apple and Tesla with so-called legacy chips, which generally use older technology and do not require state-of-the-art production facilities.
STMicroelectronics' financial results for fiscal year 2024 (FY24) included a 23.2% decrease in revenue, a 63% decrease in net income, and a 12.6% operating margin.
“FY24 revenues decreased 23.2% to $13.27 billion. Operating margin was 12.6% compared to 26.7% in FY23 and net income decreased 63.0% to $1.56 billion. We invested $2.53 billion in Net Capex (non-U.S. GAAP) while delivering free cash flow (non-U.S. GAAP) of $288 million.”
STMicroelectronics and GlobalFoundries have decided to shelve a €7.5 billion plan for a joint FDSOI wafer fab to be built at Crolles in France, according to reports. The prospects for the plan to make to be picked up later are said to be “uncertain.” (Jan 21, 2025)
Not good news for GF. It does not mention added competition but that it certainly the case. TSMC is building new fabs in Japan and Dresden for automotive and pushing customers hard to move to FinFETs with automotive qualified process versions down to 3nm.
