Jerome Ramel's questions to STMicroelectronics NV (STM) leadership • Q2 2024
Question
Jerome Ramel inquired about the current pricing environment, particularly for the Industrial and Automotive sectors, and asked how STMicroelectronics is managing industry-wide overcapacity in terms of CapEx and manufacturing adjustments.
Answer
Lorenzo Grandi, CFO, explained that the overall pricing environment sees low single-digit pressure, with a more pronounced mid-single-digit decline in Industrial microcontrollers and a low single-digit decline in Automotive. Jean-Marc Chery, CEO, added that the company is adjusting manufacturing working hours and cutting discretionary costs. Lorenzo Grandi confirmed the full-year CapEx plan of around $2.5 billion remains, focused on strategic conversions to 300mm and the 200mm silicon carbide ramp.