STMicroelectronics N.V. (NYSE:STM) Q4 2023 Earnings Call Transcript

Stephane Houri: Yes. Hello. I’m very lucky. Thank you very much. Question on the CapEx reduction, actually. Can you tell us where you are cutting your CapEx, what you are preserving, I understand that you have been always preserving the strategic project, but I have the feeling that a lot of your projects are strategic now. So if you can tell us where you are reducing your CapEx would be very helpful. Thank you.

Jean-Marc Chery: We continue to protect our — what we classify the strategy, basically, which is about silicon carbide GaN definitively. So the campus in Catania, the CapEx that we will consolidate in China with JV, we have created for SanAn [ph]. Then, okay, all the devices, which are also related to the battery management system, let’s say, power electrical powertrains, so advanced BCD technology, this kind of device. All the device and technology related to the great growth, we will have on communication equipment for satellite, where we are modulating our CapEx is on all other capacity increase. But as we are doing in a normal way, okay, clearly, the good news, I have to say that I would like to share with you is our flexibility.

So our capacity to move from a $4.1 billion CapEx now to $2.5 billion, okay? So this is demonstrating that we can continue to focus to prepare our infrastructure towards our mission of $20 billion plus. And we adapt ourselves, okay, to the market condition I described during the call.

Stephane Houri: Thank you, very much.

Celine Berthier: Any follow-up, Stephane?

Stephane Houri: Actually, I missed — sorry, I had the problem — technical problems, but what’s your view on the silicon carbide level of revenue for the year? And maybe, if you could talk a little bit about the client concentration this year. Thank you.

Jean-Marc Chery: It’s $1.5 billion to $1.6 billion. So it’s another, let’s say, a significant increase in ’24. So we are doing on the best to deliver the $2 billion in ’25. But I will not comment specifically on our main customer, but as I already shared, progressively, the weight of this very important customer for us is decreasing. Let’s say, as far as timely and smoothly, we are introducing all the new program that I report, okay, since many years to you. So yes, okay, it will decrease, but I cannot report specifically the weight of the customer. But it will decrease for sure, according to what we expect.

Stephane Houri: Okay. Thank you.

Celine Berthier: Okay. Thank you. This was the last question.

Operator: Would you like to conclude the call?

Celine Berthier: Yes, I think the time…

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