Chipmaker STMicroelectronics’ CEO sees signs of market upcycle that could meet Q2 targets
Amsterdam — STMicroelectronics’ CEO said on Wednesday that the French-Italian chipmaker has seen signs of an upcycle — a period of increased market demand — which will boost its results in the coming quarters.
Speaking at an event hosted by BNP Paribas, Jean-Marc Chery said STMicro would deliver at least the midpoint of its second-quarter guidance. It had forecast revenue of $2.71bn at midpoint for the quarter in its last earnings report.
Chery also said at the event the company expected 5,000 staff to leave in the next three years, including 2,800 job cuts announced earlier this year. Reuters
German electronics firms face rare earths shortage
Frankfurt — Shortages in rare earths are posing ever-greater challenges for companies in Germany’s electronics and digital sector, the ZVEI lobby group said on Wednesday, after China restricted exports of rare earths and other minerals.
“We can see that concern is growing. Many companies currently only have resources for a few weeks or months,” ZVEI CEO Wolfgang Weber said in an emailed statement to Reuters.
Some companies are trying to find their own solutions in China, Weber added, calling for greater intervention on the issue from the European Commission and the German government. Reuters
Germany’s cabinet approves €46bn tax stimulus
Berlin — The German cabinet approved on Wednesday a first tax relief package worth €46bn from 2025 to 2029 to support companies and revive its sluggish economy, the government said.
The aim is to boost investment with measures like favourable depreciation options for companies, including “super depreciations” of 30% a year for three years to ease the tax burden on business. Reuters
Victoria’s Secret shuts down IT network breach
Bengaluru — Victoria’s Secret on Tuesday disclosed that a security incident relating to its information technology systems had led it to temporarily shut down its website for a few days last week.
The company said it shut down corporate systems and e-commerce website on May 26 and immediately enacted response protocols to contain and prevent unauthorised network access. Its website was restored on May 29.
The lingerie maker said the breach did not affect its financial results for the first quarter or cause a material disruption to its operations, but the second quarter could be hit by the additional expenses incurred after the incident. Reuters
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