Full-year 2025 net CapEx plan: $2.0–$2.3 billion (CEO).
Cost savings target: Annual savings in high triple million dollar range exiting 2027 (CEO).
Prepared Metrics
Metric
Value
Speaker/Context
Q2 2025 Revenues
$2.77B
CEO
Q2 Gross Margin
33.5%
CEO
Q2 Operating Loss
-$133M
CFO
Q2 Net Income
-$97M
CFO
Q2 Diluted EPS
-$0.11
CFO
Q2 Free Cash Flow
-$152M
CFO
Q2 Inventory
$3.27B
CFO
Q2 Days Sales of Inventory
166 days
CFO
Q2 Net Financial Position
$2.67B
CFO
Q3 2025 Revenue Guidance
$3.17B ±350 bps
CEO
Q3 2025 Gross Margin Guidance
~33.5% ±200 bps
CEO
FY2025 Net CapEx Plan
$2.0–$2.3B
CEO
Mgmt Quotes
“We confirm that Q1 was a low point for Automotive revenues. We expect sequential growth in the third quarter versus the second quarter.” (CEO)
“Specifically for general purpose microcontrollers, we are back to year-on-year growth.” (CEO)
“We are now close to 1.5 million unique users on a 12-month rolling basis versus the 1.3 million unique users for 2024.” (CEO)
“We expect days of inventory to significantly decrease in the third quarter compared with the second quarter.” (CFO)
“I confirm we are executing our plan to deliver annual cost savings in the high triple million dollar range exiting 2027.” (CEO)
Q&A Batch (1-5 of 7)
Q1 — Janardan Nedyam Menon
Topic: Gross margin guidance and Q4 outlook
Key points:
Q3 gross margin midpoint is negatively impacted by 140 bps, of which ~20% (28 bps) is from manufacturing reshaping program (nonrecurring costs); currency effect accounts for the rest.
Unused capacity charges improve from 370 bps in Q2 to ~340 bps in Q3; manufacturing efficiency is still suboptimal.
Price/mix is neutral sequentially; Q4 gross margin should see "nice improvement" driven by lower unused capacity charges and better efficiency, partially offset by weaker USD (spot ~$1.17, effective rate ~$1.15).
Mgmt stance: Neutral — cautious on Q3 margin headwinds (currency, reshaping costs) but bullish on Q4 improvement trajectory.
Q2 — Joshua Louis Buchalter
Topic: Customer order patterns, Mobileye/TSMC relationship
Key points:
In Q3, all verticals grow sequentially and YoY except Automotive (one customer-specific); 90% of the $80 million YoY gap is intangible (capacity fee reservation from carmaker down $70 million).
No pull-ins observed in June quarter; no changes in Personal Electronics, computer equipment, communications equipment.
Mobileye EyeQ 5/6/7 use TSMC technology; ST provides design and engineering support; no revenue surprise expected for next 3–5 years.
Mgmt stance: Neutral — Automotive has customer-specific volatility, but product portfolio and customer base provide confidence; Mobileye relationship stable.
Q3 — Francois-Xavier Bouvignies
Topic: Guidance deterioration since June, customer-specific change
Key points:
Q3 YoY growth at midpoint is -2% ($80 million gap); 90% of gap is intangible (capacity fees), rest is one customer-specific forecast change.
Automotive grows sequentially in Q3 (high single digits) and again in Q4; Industrial, Personal Electronics, computer peripheral, communication equipment grow significantly YoY.
Customer change is not a market share loss; management believes customer will recover long term.
Mgmt stance: Cautious — regrets missing turning point in Q3, but attributes gap to intangibles and one-off customer issue; overall trend positive.
Q4 — Sandeep Sudhir Deshpande
Topic: Q4 sequential and YoY growth, U.S. EV rules impact
Key points:
Q4 backlog at same date shows significant sequential growth vs Q3; if booking dynamic continues (similar to Q1/Q2), Q4 should grow sequentially and be at/near turning point YoY.
No significant impact from new U.S. EV tax bill; silicon carbide midterm plan adjusts to market: close 6-inch, start 8-inch, maintain ~30% market share.
EV volume in 2025 is ~5 million cars less than forecasted 5 years ago; mix shift between battery EV and hybrid.
Mgmt stance: Neutral — positive trend but short visibility; not protected against customer-specific inventory adjustments.
Q5 — Stephane Houri
Topic: Gross margin improvement in Q4, Industrial recovery drivers
Key points:
Q4 gross margin improvement drivers: lower unused capacity charges (Q3 inventory days ~140, charges similar to Q2), improving manufacturing efficiency (still suboptimal in Q3), stable FX (spot ~$1.17, hedging impact lower but already reflected in Q3).
Industrial recovery driven by real demand: distributor POS grew sequentially and YoY in Q2; POP below POS; inventory normalizing (Asia Pacific ex-China back to normal, China normal, EMEA/Americas still slightly high).
General purpose microcontroller returned to YoY growth (high teens); no pull-ins from China; Power & Discrete and general purpose analog still have some excess inventory being controlled.
Mgmt stance: Bullish — Industrial recovery is demand-driven (not inventory replenishment); gross margin expected to improve sequentially in Q4.