STMicroelectronics announced at its Capital Markets Day on November 20, 2024, that it now expects to reach its $20 billion-plus revenue ambition by 2030, a delay from its previously forecast 2027 target. The company also set an intermediate financial model, targeting revenues around $18 billion with an operating margin between 22% and 24% in 2027-2028.
The company is implementing a manufacturing reshaping program and a cost base resizing initiative, which are projected to deliver annual cost savings in the high triple-digit million-dollar range, specifically between $300 million and $360 million in operating expenses, exiting 2027. These savings are compared to the 2024 cost base.
This strategic transformation aims to accelerate the transition to more efficient 300mm silicon wafer fabs in Agrate and Crolles, and 200mm silicon carbide facilities in Catania, Italy. The goal is to achieve critical scale, with Agrate targeting about 4,000 wafers per week exiting 2026, expected to yield at least a 20% productivity increase from the shift to 300mm.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.