STMicroelectronics NV, Europe's largest semiconductor manufacturer, has reaffirmed its ambitious financial targets for 2030 during its Capital Markets Day held in Paris. The company aims to achieve over $20 billion in revenue by the end of the decade, with an operating margin exceeding 30%. This commitment comes despite facing three outlook cuts this year due to a downturn in the markets for industrial and automotive chips.

The company has set an intermediate target of approximately $18 billion in revenue for 2027-2028, with an operating margin projected between 22% and 24%. STMicroelectronics expects to realize significant cost savings through a company-wide manufacturing reshaping program, anticipating high triple-digit million-dollar savings compared to its current cost base by the end of 2027.

STMicroelectronics had initially hoped to exceed the $20 billion revenue mark between 2025 and 2027, but ongoing challenges such as a chip inventory glut and sluggish demand in the automotive sector have necessitated a revision of this timeline. The company is now focusing on sustainable and profitable growth, with a gross margin target of 44% to 46% for the 2027-2028 period, aiming to increase this to around 50% by 2030.

Investors and analysts are keenly awaiting further details on the cost-saving initiatives and the overall strategy during the ongoing investor day event. The company’s commitment to its long-term goals reflects a strategic shift towards enhancing operational efficiency and maintaining competitiveness in a challenging market environment.