Top

STMicroelectronics Q4 2021: Earnings Beat Expectations Driven by Automotive and Industrial

STMicroelectronics one of the leading electronics and Semiconductor manufacturer has announced its Q4 and 2021 Financial Results. Overall the French-Italian multinational Chip maker Net Revenues and the performance exceeded our expectations.

  • Net revenues increased 24.9% to $12.76 billion in 2021, due to strong performance across the Automotive and Discrete Group (ADG)* and Microcontrollers and Digital ICs Group (MDG)**.
  • Net revenues of $3.56B for 4Q 2021 increased 11.2% on a sequential basis with ADG and MDG up 22.0% and 15.4%. The Analog, MEMS and Sensors Group (AMS)*** was flat.

Exhibit 1: Quarterly Revenue by Segment

STMicroelectronics Revenue by Segment
*Automotive and Discrete Group (ADG) comprising of Automotive ICs, discrete and power transistor products.
**Microcontrollers and Digital ICs Group (MDG) comprising of secure microcontrollers, EEPROM memories, and digital ASICs.
***Analog, MEMS and Sensors Group (AMS) comprising of low-power devices for IoT, and battery-operated devices.
  • Gross margins increased to 45.4% from 38.8% in the year ago quarter because of the improved product mix, favorable pricing, and manufacturing efficiencies.
  • Automotive was driven by the strong demand for vehicles, lean inventories across the supply chain and rebound from difficult supply chain dynamics in 2020. The transformation towards the electrification and digitalization of vehicles is further driving the increase in semiconductor content.
  • Industrial also saw a continued demand in high-end and consumer, again driven by the electrification and digitalization which are driving the semi content. Factory automation along with the power applications (including renewable energy, motion control, power tools and home appliances) were the main drivers.
  • Personal Electronics are driven by smartphone market growth in 2022, 5G adoption, and seasonality in 4Q 2021. Also, the demand for accessories was strong Smartwatches, TWS, gaming consoles etc.
  • Communication Equipment and Computer Peripherals: Adoption of 5G and demand for PC and notebook, also LEO satellites launch or ramp-up drove the revenues.
  • Product segments:
  • ADG revenues grew 32.5% annually, both the subgroups Automotive and Power Discreet recorded double-digit growth.
  • AMS revenues grew 18.8% annually, complemented by growth in imaging product sales.
  • MDG revenues increased 24.3% annually, microcontrollers (the largest subgroup) also reported double-digit growth partially offsetting the decline in RF communication revenue.
  • Forecast: 1Q 2022 net revenues to be around $3.5B at mid-point, a 16.1% YoY growth and a sequential decline of 1.6%.
  • For the full year 2022, revenue guidance is in the range of $14.8B to 15.3B, a growth of 16% to 20%. This is driven by focusing on the three segments, Smart Mobility, Power Energy Management, IoT and 5G.
  • Demand and Supply: Demand to remain strong but still be impacted by supply with pandemic impacts to continue in 2022. Inventories of the products across the distributors were lean. Bookings are strong and backlog visibility is now about 18 months, which is well above its planned manufacturing capacity for 2022.
  • CAPEX investment and Expansion:
  • Investing $2.1B towards additional capacity, a mix change in manufacturing footprint for wafer fabs, (digital 300mm in Crolles, analog 200mm in Singapore, SiC 150mm in Catania and Singapore) and semi assembly and test operation.
  • Investing $900M in the 300nm wafer fab (in Agrate Italy), and GaN technology and raw material for SiC.

Key Takeaways

  • The focus on IoT and 5G will be STMicro’s long-term growth enabler.
  • Investing in production of 300mm wafer to help alleviate the global chip shortage as well as the production of chips for customers like – Tesla and Apple (STMicro’s main customers), should lead to continuous growth.
  • Concentrating on research and development in silicon carbide (SiC), and gallium nitride (GaN) technology for industrial, automotive and aerospace applications will be an added value proposition and can be profitable for STM.

Related Posts

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.