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STMicroelectronics N.V. (STM) is a global leader in the semiconductor industry, designing and manufacturing a broad range of products for a variety of applications. Formed in 1987 through a merger between Italy's SGS Microelettronica and France's Thomson Semiconductors, the company has become a key supplier of analog chips, microcontrollers, sensors, and discrete power semiconductors, especially for industrial and automotive markets.
With more than 50,000 employees and a network of over 200,000 customers, STMicroelectronics has a strong global presence, characterized by state-of-the-art manufacturing facilities. The company is committed to driving innovation in electronics applications—from smarter mobility and efficient power management to cloud-connected autonomous systems.
In recent developments, STMicroelectronics has made significant strides towards sustainability, aiming for carbon neutrality on scopes 1 and 2, and partially on scope 3 by 2027. The company has entered into various partnerships and agreements to support this goal. Notably, STMicroelectronics signed a ten-year Power Purchase Agreement (PPA) with Centrica Energy for renewable energy in Italy, and expanded a silicon carbide (SiC) substrate wafer supply agreement with SiCrystal.
In the automotive sector, STMicroelectronics collaborates with Panasonic and Geely Auto Group on innovative projects. Panasonic has integrated STMicroelectronics' STM32F3 MCU and edge AI tools into their e-assisted bike, while Geely uses ST’s third-generation SiC MOSFETs in their electric vehicles to enhance performance and efficiency.
On the financial front, STMicroelectronics reported $3.47 billion in net revenues for Q1 2024. Despite a year-over-year decrease of 18.4%, the company continues to invest in future growth, as evidenced by their plans for a high-volume 200mm SiC manufacturing facility in Catania, Italy. This new facility, part of a larger Silicon Carbide Campus, is expected to commence production in 2026, supporting the company's leadership in SiC technology for automotive and industrial applications.
With a focus on R&D and substantial investments in sustainable energy and innovative technologies, STMicroelectronics remains a significant player in the semiconductor industry, driving advancements that support a more connected and environmentally friendly world.
STMicroelectronics reported impressive Q1 2023 financial results, with net revenues of $4.25 billion, a 49.7% gross margin, and a net income of $1.04 billion or $1.10 diluted earnings per share. This reflects a 19.8% increase in revenues year-over-year and a substantial 39.8% boost in net income. The operating margin rose to 28.3%, up from 24.7% a year earlier. CEO Jean-Marc Chery noted that strong performances in the Automotive and Industrial sectors offset declines in Personal Electronics. Looking ahead, the Q2 outlook predicts revenues of $4.28 billion and a slight decrease in gross margin to 49.0%, indicating continued growth momentum in the semiconductor market.
STMicroelectronics has disclosed the status of its common share repurchase program, revealing the buyback of 240,473 ordinary shares from April 17 to April 21, 2023, totaling approximately EUR 10.75 million. The repurchase aligns with obligations from employee share option programs and is part of a broader strategy approved in May 2021. The shares were acquired at a weighted average price of EUR 44.7033 each, representing 0.03% of the company's issued share capital. Post-buyback, STMicroelectronics holds a total of 9,880,203 treasury shares, equating to around 1.1% of its issued capital. This action aims to enhance shareholder value while addressing equity compensation needs.
STMicroelectronics announced a share repurchase program, disclosing transactions from April 11 to April 14, 2023. During this period, the company bought back 191,375 ordinary shares, representing 0.02% of its issued share capital, at a total cost of approximately EUR 8.85 million and a weighted average price of EUR 46.22 per share.
The repurchase is part of an ongoing program approved by shareholders to fulfill obligations related to employee share option programs. Currently, STMicroelectronics holds 9,639,730 treasury shares, which is around 1.1% of its issued capital.
ZF has signed a multi-year supply agreement with STMicroelectronics (NYSE: STM) for silicon carbide devices, enhancing its electromobility capabilities.
Under this contract, ST will supply double-digit millions of silicon carbide devices starting in 2025, which will be integrated into ZF's new modular inverter platform.
This partnership supports ZF's order book exceeding €30 billion in electromobility through to 2030, leveraging ST's manufacturing capabilities in Europe and Asia.
STMicroelectronics emphasizes its commitment to expand silicon carbide capacity to meet the electrification and decarbonization targets across automotive and industrial sectors.
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