The Franco-Italian semiconductor company remains profitable despite a downturn in results and announces plans to accelerate its industrial restructuring.
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Declining Results yet a Steadfast Strategy
The Franco-Italian semiconductor manufacturer STMicroelectronics announced on Thursday that its quarterly results have declined, showing a significant drop in profitability. Net profit fell by 32.3% in the third quarter of 2025, down to $237 million, while its revenue reached $3.2 billion, a decrease of 2% year-over-year — still slightly above analyst expectations.
In response, STMicroelectronics shares opened more than 5% lower at the Paris stock exchange, amidst investor caution due to the slow recovery of the semiconductor industry. CEO Jean-Marc Chéry reassured stakeholders despite the downturn, reiterating the long-term strategy of STMicroelectronics: Our strategic priorities remain clear: accelerate innovation, execute our industrial remodeling project, and resize our overall cost base
, as stated in the press release.
The company, which employs about 50,000 staff worldwide, had already unveiled in October 2024 a new corporate project
to adapt its structure in response to a more volatile global market. This plan includes up to 2,800 voluntary departures, with about 1,000 in France, aimed at reducing operating costs by 2027.
Growth Prospects
STMicroelectronics is banking on artificial intelligence to boost the productivity of its industrial sites and will now focus its investments on a few key semiconductor models. This strategy aims to enhance the competitiveness of the group in an evolving industry, characterized by strong demand for chips used in automotive, consumer electronics, and high-performance computing.
Additionally, the group has confirmed the acquisition of the MEMS sensors business (micro-electromechanical systems) from NXP Semiconductors, a deal worth up to $950 million, set to be finalized in the first half of 2026.
STMicroelectronics has also proposed the appointment of two new members to its supervisory board — Armando Varricchio and Orio Bellezza — pending approval at the general meeting in December.
Caution as the Year Ends
For the fourth quarter of 2025, STMicroelectronics expects revenue of about $3.28 billion, slightly higher than the previous quarter.
Despite an uncertain economic environment, the company hopes that its streamlining efforts and targeted investments will lead to a sustainable growth trajectory starting in 2026.