ST says broad portfolio will help it reach $20bn annual sales
Leading European chip company STMicroelectronics NV is aiming grow at faster than the market rate to annual revenues of more than $20 billion by sometime between the 2025 and the 2027 financial year.
The goal was disclosed at the company’s annual analysts’ briefing – known as the Capital Markets Day. The company’s annual revenue in 2021 was $12.8 billion
The company said that its broad portfolio of technologies and products as well as its business model as an integrated device manufacturer (IDM) would enable it address key high-growth market sectors. The technology areas include IoT, power, RF, connectivity and sensors and these can help address applications in automotive, industrial, personal electronics and communications infrastructure.
Senior executives spoke at the meeting and indicated that as the technology utilization becomes more integrated then ST’s broad portfolio allows it to bring multiple sensing and actuating technologies together with digital processing and software.
The company confirmed its plans to spend between $3.4 billion and $3.6 billion on capital expenditure in 2022 with a particular emphasis on expansion at Crolles, France and Agrate, Italy, to help double 300mm manufacturing output.
First wafers are expected to ship from the Agrate 300mm wafer fab in 3Q22, said Orio Bellezza, president of technology and manufacturing at ST.
When CEO Jean-Marc Chery took over the top job in 2018 ST had a $9.7 billion annual revenue. The company achieved $12 billion annual revenue in 2021 and has forecast a $15 billion revenue in 2022.
Different economic climate
However, this strong four-year growth has been in the context of strong market demand and rising prices for components. It is predicted that the chip market will fall by as much as 23 percent in 2023, which will make ST’s ambitions hard to realize (see Semiconductor market heads for severe downturn says analyst).
Meanwhile ST announced it has formed collaborations with Microsoft and Amazon Web Services (AWS) to speed up customers’ abilities to develop secure IoT devices.
The work with Microsoft combines the Azure real-time operating system and IoT middleware, STM32U5 microcontrollers and STSAFE-A110 secure element with Arm TF-M firmware
With AWS ST is combining FreeRTOS and STM32U5 microcontrollers and the STSAFE-A110 secure element and ARM secure firmware. This combination will allow customers to implement and securely connect IoT devices to the AWS cloud.
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