STMicroelectronics, Europe’s largest semiconductor maker, which has a large facility in Malta, has forecast sales and margins for the quarter that beat analysts’ estimates and says it has not seen any sign of an economic slowdown in its business yet, Bloomberg reported.

First-quarter revenue would decline as much as 11 per cent to $2,45bn from the previous period’s $2,74bn, STMicroelectronics, based in Geneva, said on Tuesday.

Analysts had projected sales of $2,35bn, the average of nine estimates compiled by Bloomberg.

The forecasts allayed investor concern that a recession in the US and its effect on European growth would hurt chip makers. Demand for chips used in cellphones and computers could decline should the economy slow.

Texas Instruments, the biggest maker of semiconductors used in cellphones, also forecast first-quarter results that topped some analysts’ estimates as demand holds up better than anticipated.

“The fact that STMicro and Texas aren’t experiencing a slowdown in demand is positive,” said Raffaella Sommariva, a fund manager at AZ Fund Management in Luxembourg, which oversees $14,5bn.