Restructuring leads to a huge loss for STMicroelectronics (STM.US), but performance outlook ignites expectations for MCU recovery.

According to Securities Times Finance APP, STMicroelectronics (STM.US), one of the largest chip manufacturers in Europe, released its second quarter performance report for 2025. The financial data shows that this semiconductor giant focusing on MCU and analog chips recorded a business loss of over $100 million in the second quarter, falling short of market expectations. The main reasons for this were restructuring costs and a demand downturn caused by excess inventory of MCU chips. However, the performance outlook indicates that the giant expects a recovery cycle for MCU and analog chips to occur soon. Last year, the chip giant announced a cost-cutting plan to fully restructure its manufacturing facilities and save hundreds of millions of dollars in expenses by 2027. This plan includes laying off 5,000 employees at large chip factories in France and Italy over the next three years.