STMicroelectronics has warned that revenues for the fourth quarter will be below the outlook provided in October.
"Based on current visibility, the Company now expects fourth quarter revenues to be between approximately $2.2bn and $2.35b, as compared to $2.7bn reported in the prior quarter, or a sequential change in the range of about -12.8% to -18.4%," said the semiconductor manufacturer.
The company said it had seen a slowdown in the billings and substantial changes in customers' demand and order push-outs for the month of December.
"This situation reflects the well-known weaknesses in the industry, across most geographies and market segments, and, in particular, in wireless, automotive, and computer peripherals," said STMicroelectronics.
The Company is reacting to the weaker-than-anticipated demand environment with a further reduction of manufacturing activity and reduced sourcing from third-party suppliers, compared to planned activities when entering the quarter.
It said it was "aggressively" implementing cost-control initiatives and is keen to see the cost benefits arising from the recent creation of ST-NXP Wireless.
ST is the latest in a line of chip manufactuers warning about falling sales as credit crunch hits business confidence.
See also: Credit Crunch: Semiconductor light amid economic gloom