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STMicro Sees Clearer 2026 Outlook as Restructuring Costs Persist

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STMicroelectronics forecast first-quarter revenue slightly above market expectations, citing improving visibility and signs of recovery in its key end markets, but warned that restructuring costs will continue to weigh on results through 2026. The Franco-Italian chipmaker said it expects revenue of about $3.04 billion in the first quarter, ahead of analysts’ average estimate of $2.99 billion, lifting its shares in early trade.

The company reported fourth-quarter net income of $125 million, well below both analysts’ expectations and last year’s result, after booking a $141 million impairment linked to restructuring. Excluding the charge, profit would have been $266 million. STMicro said demand in its core automotive, industrial and consumer electronics markets has begun to stabilise as inventory corrections ease after a prolonged post-pandemic slowdown.

However, the group cautioned that the impact of its European manufacturing overhaul will be felt across every quarter of 2026. The restructuring involves shifting production away from older facilities in France and Italy toward newer sites, with finance chief Lorenzo Grandi saying costs will remain elevated even as operational charges gradually decline, supporting margin improvement over time.

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Nexperia Assures Continued Chip Supply Through Alternative Routes Amid Europe–China Standoff

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Dutch chipmaker Nexperia has reaffirmed its commitment to maintaining wafer deliveries despite the ongoing dispute between its Europe-based unit and packaging plant in China. In a statement, the company clarified that shipments have not been halted entirely and that it is actively offering alternative supply chain routes to minimise disruption for customers.

The standoff, triggered by the Dutch government’s seizure of Nexperia over concerns of technology transfer, has led to significant strain on global automotive manufacturing. While Europe has paused wafer shipments to the Dongguan facility, the Chinese arm is believed to have enough wafers and finished products to operate for several months. Nexperia said any interruption in shipments from China is the responsibility of its Chinese units, adding that it continues to work closely with customers to reduce pressure on the auto sector.

In response to the supply bottleneck, China temporarily eased export controls on chips produced at the Dongguan plant, offering short-term relief to carmakers. Meanwhile, a Dutch delegation is scheduled to visit China next week to advance discussions aimed at resolving the impasse and restoring smooth supply chain operations.

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