China focus for STMicro as shares tumble 6.5%
Europe's largest maker of semiconductors, STMicroelectronics, said it will look to emerging markets for growth after posting a $142 million third-quarter net loss.
Shares in the French-Italian company sank 6.5 percent in morning trade but CEO Carlo Bozotti told CNBC Wednesday that manufacturing in China is increasing and the firm is perfectly positioned to take advantage of that growth.
(Read More: STMicro struggles with softening smartphone market)
"We are there. I believe we will be even more present," Bozotti said. "We are encouraged by the progress and we will have more products in the future."
Bozotti was defensive over its exposure to the smartphone market and Blackberry, declaring that it was the number one motion sensor maker in China in the automotive sector. It added that since it dissolved the partnership with Ericsson back in August, the company's exposure to Blackberry, which has suffered from dwindling sales, has been limited.
Bozotti was unable to confirm whether the chipmaker was part of the new Apple iPhone range, with rumors that the Cupertino-based company opted for a Bosch Sensortech sensor instead.
"We didn't lose anything," Bozotti said. "We are in all the major phones from the major customers in the world."
(Read More: Rising smartphonestars look to outshine Apple)
The company's third quarter net loss of $142 million was mainly due to a charge of $120 million, mostly non-cash, in connection with its annual third-quarter impairment review, it said, adding that it had delayed its profit margin target.
"Growth was milder than expected due to a muted order pattern during the quarter driven by softness in high-end smartphones in Asia and the mass market in Asia, including the cable set-top box market in certain countries," Bozotti said in a press release which accompanied the earnings announcement. Shares which were lower on Wednesday have rallied 6.7 percent since the start of 2013.
— CNBC.com's Matt Clinch. Follow him on Twitter @mattclinch81