(Bloomberg) -- STMicroelectronics NV pushed back its target to reach at least $20 billion in revenue by three years to 2030, as the chipmaker struggles with weak orders for its automotive and industrial semiconductors.

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The Franco-Italian company set an intermediate goal of hitting around $18 billion by 2028 and operating margin within a range of 22% to 24% in 2027 to 2028, it said in a statement on Wednesday ahead of its capital markets day. STMicro previously targeted revenue of $20 billion or more by 2027.

STMicro, which makes chips for Apple Inc. and Tesla Inc., has been hit by a slump in orders from customers in the auto, industrial and electronics industries and had previously cut its 2024 revenue guidance twice. The new targets come after it announced in October a cost-cutting program to save hundreds of millions of dollars by the end of 2027, without disclosing details.

“The market we serve is becoming increasingly complex, with frequent crises, and highly competitive,” Chief Executive Officer Jean-Marc Chery said in his opening remarks. “We expect to grow twice as fast as our serviceable addressable market.”

The chipmaker previously said it expects sales to decline 23% to about $13.27 billion this year. The company’s operating margin in the first three quarters of 2024 was 13.1%.

STMicro’s shares fell 0.7% to €23.07 at 10:06 a.m. in Paris. On Tuesday, they closed at the lowest level in more than four years.

STMicro and its peers Infineon Technologies AG and NXP Semiconductors NV heavily depend on the automotive sector, which is facing a glut of inventory and lower-than-expected demand for electric vehicles. Infineon previously said its sales in the first fiscal quarter will fall before the market picks up later in its 2025 fiscal year, which ends in September.

“Though difficult, the ‘28 guidance could be achieved,” JPMorgan analysts Sandeep Deshpande and Anchal Sahu wrote in a note. “The 2030 margin guidance with the current product portfolio seems aspirational.”

Geopolitical tensions also have the potential to add to pressure on European chipmakers after Donald Trump was elected president in the US. European chipmakers are heavily dependent on China, which has been a growth driver amid weak sales elsewhere.