Chipmaker STMicro sees sales growth slowdown in fourth quarter

Franco-Italian chipmaker STMicroelectronics expects sales growth to slow in the last part of the year, the company said on Thursday, amid rising fears of a global recession and falling demand for electronic products.

STMicro said it expected fourth-quarter sales to edge up by 1.8% from the previous quarter to about $4.4 billion. This contrasts with the 12.6% jump seen in the three months that ended on September 30.

The Geneva-based company, co-controlled by the Italian and French governments, said demand rose across all its products in the third quarter, beating market expectations.

Net revenue in the third quarter rose to $4.32 billion, above the company's own guidance and the $4.24 billion analyst consensus compiled by Visible Alpha.

Gross margin stood at 47.6% in the third quarter, slightly above market expectations.

STMicro said it now expected full-year net revenue to amount to $16.1 billion, up 26% from a year earlier, as well as a gross margin of about 47.3%, in line with its previously announced guidance.