Core Insights - STMicroelectronics has announced the certification of its ST87M01 NB-IoT and geolocation module for Deutsche Telekom networks, enhancing its market position in Europe [1][4][9] Product Features - The ST87M01 module is NB-IoT release 15 certified and integrates connectivity and geolocation capabilities in a compact design, compliant with 3GPP and EU standards [2][9] - New functionalities include Wi-Fi positioning, which improves geolocation accuracy in indoor and dense urban environments where GNSS may be unreliable [2][8][9] - The module supports Remote SIM Provisioning, allowing users to switch mobile network operators without changing physical SIM cards, adhering to GSMA SGP.32 standards [3][7] Certification and Compliance - Certification by Deutsche Telekom is highlighted as a significant differentiator, confirming the module's performance and efficiency for high-volume IoT projects [4][9] - The ST87M01 module is also approved by the Global Certification Forum (GCF), promoting interoperability among mobile and IoT products [5] Demonstrations and Events - STMicroelectronics will showcase the ST87M01 module and its features at the Mobile World Congress in Barcelona and the embedded world event in Nuremberg in March 2025 [6][7] - Demonstrations will include the Remote SIM Provisioning capability and the new Wi-Fi positioning feature, illustrating the module's versatility for various IoT applications [7][8]

Core Viewpoint - The establishment of the joint venture "Anifa Semiconductor Co., Ltd." between STMicroelectronics and Sanan Optoelectronics marks a significant milestone in localizing the production of 8-inch silicon carbide (SiC) wafers in China, aimed at meeting the growing demand in the electric vehicle and industrial power sectors by 2025 [1][3][4]. Group 1: Joint Venture and Production - The joint venture, located in Chongqing, includes an 8-inch SiC power device manufacturing facility and a separate SiC substrate manufacturing plant operated by Sanan, both designed to support local production needs [1][4]. - The total investment for the joint venture is projected to be approximately 23 billion RMB (3.2 billion USD), making it the first large-scale production line for automotive-grade SiC power devices in China [4][6]. Group 2: Market Demand and Industry Trends - The demand for SiC devices is expected to surge, with a forecasted market value of nearly 10 billion USD by 2029, driven primarily by the automotive, mobile, and transportation sectors [3]. - The shift from 6-inch to 8-inch wafers is becoming a consensus in the industry due to the increased effective area for cutting dies, which significantly reduces costs and enhances production efficiency [6][7]. Group 3: Local Economic Impact - The project is anticipated to enhance Chongqing's semiconductor industry chain, contributing to the formation of a significant SiC industry cluster and improving the local economy [4][12]. - STMicroelectronics' commitment to local production aligns with China's strategic goals for high-quality industrial development and innovation [9][12]. Group 4: Long-term Strategy - STMicroelectronics has a long history in China, having established a complete industrial chain and focusing on localization to better serve the Chinese market [10][11]. - The company's strategy includes collaboration with local educational institutions and partners to foster talent and innovation in the semiconductor field [11].

[Key Information](index=8&type=section&id=Item%203.%20Key%20Information) [Selected Financial Data](index=8&type=section&id=Selected%20Financial%20Data) The company's financial performance shows significant growth from 2020 to 2023, followed by a sharp decline in 2024 | Financial Metric | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Revenues ($M)** | 13,269 | 17,286 | 16,128 | 12,761 | 10,219 | | **Gross Profit ($M)** | 5,220 | 8,287 | 7,635 | 5,326 | 3,789 | | **Operating Income ($M)** | 1,676 | 4,611 | 4,439 | 2,419 | 1,323 | | **Net Income (Parent) ($M)** | 1,557 | 4,211 | 3,960 | 2,000 | 1,106 | | **Diluted EPS ($)** | 1.66 | 4.46 | 4.19 | 2.16 | 1.20 | | **Net Cash from Operating Activities ($M)** | 2,965 | 5,992 | 5,202 | 3,060 | 2,093 | | **Total Assets ($M)** | 24,743 | 24,453 | 19,982 | 15,540 | 14,454 | | **Total Parent Equity ($M)** | 17,449 | 16,729 | 12,693 | 9,209 | 8,448 | | **Debt-to-Equity Ratio** | 0.17 | 0.17 | 0.21 | 0.28 | 0.31 | [Risk Factors](index=10&type=section&id=RISK%20FACTORS) The company faces a wide range of risks inherent to the semiconductor industry and its specific operations [Risks Related to the Semiconductor Industry](index=13&type=section&id=Risks%20Related%20to%20the%20Semiconductor%20Industry) The company is exposed to significant risks from the global environment and the inherent nature of the semiconductor industry - Global economic, political, and social uncertainties, including trade policies, tariffs, and geopolitical conflicts, can adversely affect customer demand and disrupt the supply chain[34](index=34&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - The semiconductor industry is highly cyclical, subject to significant downturns characterized by reduced demand, price erosion, and high inventory levels, which can negatively impact financial results[41](index=41&type=chunk) - The company may struggle to align production capacity with fluctuating demand, leading to risks of unused capacity charges during downturns or inability to meet customer demand during upturns[48](index=48&type=chunk) - Intense competition and industry consolidation require continuous innovation and may erode market share or pressure the company to restructure[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Risks Related to Operations](index=16&type=section&id=Risks%20Related%20to%20Our%20Operations) Operational risks are substantial, stemming from high fixed costs, intense competition, supply chain dependencies, and cybersecurity threats - High fixed costs associated with manufacturing facilities can adversely impact results during periods of decreased demand[52](index=52&type=chunk) - The company's computer systems are subject to increasingly sophisticated cybersecurity threats, which could lead to system disruptions, data theft, and significant financial loss[69](index=69&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - The business is dependent on continued growth in its end-markets and its ability to retain key customers, with **Apple accounting for 14.5% of total revenues in 2024**[83](index=83&type=chunk)[84](index=84&type=chunk) - The company depends on patents and other IP rights and may face costly litigation for alleged infringement of third-party IP[94](index=94&type=chunk)[95](index=95&type=chunk) - The company has committed to becoming carbon neutral (scopes 1 & 2 and parts of scope 3) and achieving 100% renewable electricity sourcing by 2027, which could impose additional costs and operational burdens[111](index=111&type=chunk)[112](index=112&type=chunk) [Risks Related to Corporate and Financial Structure](index=28&type=section&id=Risks%20Related%20to%20Corporate%20and%20Financial%20Structure) The company's corporate and financial structure presents unique risks, including a controlling shareholder and dual financial reporting standards - The controlling shareholder, ST Holding, owned approximately **27.5% of common shares** as of December 31, 2024, and is indirectly controlled by the French and Italian governments, which may lead to conflicts of interest with other investors[123](index=123&type=chunk)[124](index=124&type=chunk) - Anti-takeover measures, including an option agreement for an independent foundation to acquire preference shares, may deter a change of control and adversely affect the market price of common shares[127](index=127&type=chunk) - The company is required to prepare financial statements under both IFRS and U.S. GAAP, which can increase complexity and potentially cause confusion in the marketplace due to differing results[129](index=129&type=chunk)[131](index=131&type=chunk) - As a Dutch company, U.S. investors may face difficulties in protecting their interests and enforcing U.S. court judgments in The Netherlands[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Company Information](index=31&type=section&id=Item%204.%20Information%20on%20the%20Company) [Business Overview and Strategy](index=31&type=section&id=Business%20Overview%20and%20Strategy) STMicroelectronics is a global integrated device manufacturer (IDM) that designs, develops, manufactures, and markets a wide range of semiconductor products - The company operates as an Integrated Device Manufacturer (IDM), managing the entire semiconductor supply chain from design to manufacturing[142](index=142&type=chunk) - STMicroelectronics addresses four main end-markets: Automotive, Industrial, Personal Electronics, and Communications Equipment, Computers & Peripherals[139](index=139&type=chunk) - The company's strategy focuses on three key long-term trends: smart mobility, power & energy efficiency, and cloud-connected autonomous things[143](index=143&type=chunk) - A key sustainability goal is to be carbon neutral in scopes 1 and 2, plus specific scope 3 emissions, and to source 100% renewable electricity by the end of 2027[146](index=146&type=chunk) [Product Information](index=32&type=section&id=Product%20Information) The company's product portfolio is organized into two main groups: Analog, Power & Discrete, MEMS and Sensors (APMS) and Microcontrollers, Digital ICs and RF products (MDRF) | Product Group | Reportable Segments | | :--- | :--- | | **APMS** (Analog, Power & Discrete, MEMS and Sensors) | **AM&S** (Analog, MEMS & Sensors) <br> **P&D** (Power & Discrete) | | **MDRF** (Microcontrollers, Digital ICs and RF) | **MCU** (Microcontrollers) <br> **D&RF** (Digital ICs & RF Products) | [APMS Product Group](index=33&type=section&id=Analog%2C%20Power%20%26%20Discrete%2C%20MEMS%20and%20Sensors%20%28APMS%29%20product%20group) The APMS group consists of two segments: AM&S, providing smart power and analog ICs, and P&D, offering discrete and power transistors - The AM&S segment develops analog ICs using proprietary BCD and VIPpower technologies for automotive applications like battery management and braking systems, as well as MEMS sensors and optical sensing solutions[156](index=156&type=chunk)[161](index=161&type=chunk)[164](index=164&type=chunk) - The P&D segment provides a broad portfolio of power transistors, including advanced wide bandgap materials like Silicon Carbide (SiC) and Gallium Nitride (GaN) for high-efficiency systems[166](index=166&type=chunk)[167](index=167&type=chunk) [MDRF Product Group](index=35&type=section&id=Microcontrollers%2C%20Digital%20ICs%20and%20RF%20products%20%28MDRF%29%20product%20group) The MDRF group is composed of two segments: MCU, featuring the STM32 family, and D&RF, offering digital and RF products for various applications - The MCU segment's flagship product is the STM32 family of microcontrollers, with the new STM32N6 series embedding ST's proprietary neural processing unit for enhanced machine-learning performance[168](index=168&type=chunk) - The automotive MCU portfolio features the Stellar family, which supports real-time virtualization and over-the-air updates, optimized for vehicle electrification and new architectures[177](index=177&type=chunk) - The D&RF segment is a leading player in ADAS, providing SoCs and radar systems for functions ranging from basic assistance to advanced autonomous driving features[181](index=181&type=chunk) [Customers and Sales](index=37&type=section&id=Customers%20and%20Sales) ST serves over 200,000 customers, with Apple being the largest in 2024, and utilizes a significant distribution channel - Major customers include Apple, Bosch, Continental, Denso, Hyundai Motor, Mobileye, Samsung, SpaceX, Tesla, and Vitesco[187](index=187&type=chunk) - In 2024, the largest customer, Apple, accounted for **14.5% of total net revenues**[84](index=84&type=chunk)[331](index=331&type=chunk) - In Q1 2024, a new Segment Marketing and Application (SM&A) organization was implemented to complement the existing regional sales structure, focusing on four end markets[192](index=192&type=chunk) - Sales through distributors accounted for **27% of net revenues in 2024**, a decrease from 34% in 2023[335](index=335&type=chunk) [Research & Development and Intellectual Property](index=39&type=section&id=Research%20%26%20Development%20and%20Intellectual%20Property) The company maintains a strong focus on R&D, investing approximately 15.7% of its 2024 net revenues, and actively protects its innovations | Year | R&D Expenses ($M) | % of Net Revenues | | :--- | :--- | :--- | | 2024 | 2,077 | 15.7% | | 2023 | 2,100 | 12.2% | | 2022 | 1,901 | 11.8% | - The company owns over **21,000 active and pending patents worldwide** to protect its proprietary technologies and processes[198](index=198&type=chunk)[212](index=212&type=chunk) - ST receives significant public funding, mainly from EU member states and China, to support R&D, innovation, and industrialization, including through programs like IPCEI and the European Chips Act[226](index=226&type=chunk)[227](index=227&type=chunk)[232](index=232&type=chunk) [Manufacturing and Facilities](index=39&type=section&id=Property%2C%20Plants%20and%20Equipment) As an IDM, ST operates 14 main manufacturing sites globally and is making strategic investments to expand its capabilities - The company operates **14 main manufacturing sites worldwide**, with a total front-end capacity of approximately 145,000 wafer starts per week (200mm equivalent) as of year-end 2024[202](index=202&type=chunk)[207](index=207&type=chunk) - Significant investments include a new high-volume 200mm SiC manufacturing facility in Catania, Italy, and a 200mm SiC device manufacturing joint venture with Sanan Optoelectronics in Chongqing, China[204](index=204&type=chunk) - In 2024, the company subcontracted approximately **11% of the value of its total silicon production** to external foundries[209](index=209&type=chunk) - Net capital expenditure payments were **$2,642 million in 2024**, down from $4,111 million in 2023[210](index=210&type=chunk) [Operating and Financial Review and Prospects](index=48&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) [2024 Business Overview and Outlook](index=54&type=section&id=2024%20Business%20Overview) In 2024, STMicroelectronics experienced a significant market downturn, with full-year net revenues decreasing 23.2% to $13.27 billion | Metric | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $13,269 M | $17,286 M | -23.2% | | Gross Margin | 39.3% | 47.9% | -860 bps | | Operating Margin | 12.6% | 26.7% | -1410 bps | | Diluted EPS | $1.66 | $4.46 | -62.8% | | Q1 2025 Outlook | Mid-Point | Range | | :--- | :--- | :--- | | Net Revenues | $2.51 B | +/- 350 bps | | Gross Margin | 33.8% | +/- 200 bps | - The company initiated a program to resize its global cost base and reshape its manufacturing footprint, accelerating the transition to 300mm silicon and 200mm SiC, aiming for significant annual cost savings by the end of 2027[309](index=309&type=chunk)[313](index=313&type=chunk) [Annual Results of Operations (2024 vs. 2023 vs. 2022)](index=60&type=section&id=Annual%20Results%20of%20Operations) The company's annual performance declined sharply in 2024 compared to 2023, with significant drops in revenues and profitability | (In millions) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Net Revenues** | **$13,269** | **$17,286** | **$16,128** | | *% Change YoY* | *-23.2%* | *7.2%* | *26.4%* | | **Gross Profit** | **$5,220** | **$8,287** | **$7,635** | | *Gross Margin* | *39.3%* | *47.9%* | *47.3%* | | **Operating Income** | **$1,676** | **$4,611** | **$4,439** | | *Operating Margin* | *12.6%* | *26.7%* | *27.5%* | | **Net Income (Parent)** | **$1,557** | **$4,211** | **$3,960** | - The **23.2% decrease in 2024 net revenues** was a result of an approximate **15% decrease in average selling prices** (due to product mix and lower prices) and an **8% decrease in volumes**[330](index=330&type=chunk) | Net Revenues by Segment ($M) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | AM&S | 4,764 | 5,478 | -13.0% | | P&D | 3,126 | 3,852 | -18.8% | | MCU | 3,466 | 5,668 | -38.8% | | D&RF | 1,898 | 2,272 | -16.5% | - Operating expenses in 2024 were **$3,726 million**, remaining flat compared to $3,731 million in 2023[340](index=340&type=chunk) [Quarterly Results of Operations (Q4 2024)](index=68&type=section&id=Quarterly%20Results%20of%20Operations) In Q4 2024, net revenues were $3.32 billion, a 22.4% decrease year-over-year but a 2.2% increase sequentially, meeting guidance | (In millions) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | **Net Revenues** | **$3,321** | **$3,251** | **$4,282** | | *% Seq. / YoY Change* | *+2.2% / -22.4%* | | | | **Gross Profit** | **$1,253** | **$1,228** | **$1,949** | | *Gross Margin* | *37.7%* | *37.8%* | *45.5%* | | **Operating Income** | **$369** | **$381** | **$1,023** | | *Operating Margin* | *11.1%* | *11.7%* | *23.9%* | | **Net Income (Parent)** | **$341** | **$351** | **$1,076** | | Q4 2024 Net Revenues by Segment ($M) | Revenue | % Seq. Change | % YoY Change | | :--- | :--- | :--- | :--- | | AM&S | 1,198 | +1.1% | -15.5% | | P&D | 752 | -6.8% | -22.1% | | MCU | 887 | +7.0% | -30.2% | | D&RF | 481 | +13.0% | -22.8% | [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position of $6.18 billion at year-end 2024, despite a significant decrease in operating cash flow | (In millions) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | 2,282 | 3,222 | | Short-term deposits | 1,450 | 1,226 | | Marketable securities | 2,452 | 1,635 | | **Total liquidity** | **6,184** | **6,083** | | Total financial debt | (2,953) | (2,927) | | **Net Financial Position (non-GAAP)** | **3,231** | **3,156** | | (In millions) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 2,965 | 5,992 | 5,202 | | Net cash used in investing activities | (3,742) | (5,766) | (4,591) | | Net cash used in financing activities | (155) | (267) | (567) | | **Net cash decrease** | **(940)** | **(36)** | **33** | - Free Cash Flow (a non-U.S. GAAP measure) was **$288 million in 2024**, a significant decrease from $1,774 million in 2023, mainly due to lower cash from operations and continued capital expenditures[420](index=420&type=chunk) - The company plans to invest between **$2.0 to $2.3 billion in Net Capex** (non-U.S. GAAP) in 2025, primarily for manufacturing reshaping initiatives towards 300mm silicon and 200mm SiC[437](index=437&type=chunk) [Directors, Senior Management, and Employees](index=87&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) [Supervisory Board](index=87&type=section&id=A.%20Supervisory%20Board) The company is overseen by a nine-member Supervisory Board, chaired by Nicolas Dufourcq, responsible for advising and supervising the Managing Board - The Supervisory Board consisted of nine members as of December 31, 2024, chaired by Nicolas Dufourcq, with Maurizio Tamagnini as Vice Chairman[445](index=445&type=chunk) - The board has five committees: Audit, Compensation, Nominating & Corporate Governance, Strategic, and Sustainability[466](index=466&type=chunk) | Supervisory Board Member | Total 2024 Compensation (€) | | :--- | :--- | | Nicolas Dufourcq | 0 (waived) | | Maurizio Tamagnini | 172,500 | | Pascal Daloz | 73,500 | | Janet Davidson | 115,000 | | Ana de Pro Gonzalo | 161,000 | | Frédéric Sanchez | 109,500 | | Donatella Sciuto | 107,500 | | Paolo Visca | 98,000 | | Hélène Vletter-van Dort | 123,500 | | **Total** | **€970,500** | [Managing Board](index=96&type=section&id=B.%20Managing%20Board) The management is entrusted to the Managing Board, comprising the President and CEO and President and CFO, with performance-based remuneration - The Managing Board consists of Jean-Marc Chery (President & CEO) and Lorenzo Grandi (President & CFO)[492](index=492&type=chunk) - The remuneration structure includes a base salary, a short-term cash incentive, and a long-term stock award incentive, with performance metrics covering financial criteria and a sustainability/CSR index[506](index=506&type=chunk)[515](index=515&type=chunk)[516](index=516&type=chunk) | Managing Board Member | 2024 Total Compensation | | :--- | :--- | | Jean-Marc Chery (CEO) | $9,465,160 | | Lorenzo Grandi (CFO) | $1,801,587 | - The CEO's 2024 compensation was composed of **29% fixed and 71% variable pay**, reflecting the strong link to performance[552](index=552&type=chunk) [Senior Management](index=113&type=section&id=C.%20Senior%20Management) Senior Management's compensation structure is aligned with the Managing Board's, with a significant portion linked to performance and ESG criteria - The Executive Committee, chaired by the CEO, consisted of nine members as of December 31, 2024, and is responsible for managing the company's strategy and operations[563](index=563&type=chunk)[564](index=564&type=chunk) - Sustainability and CSR metrics (health & safety, environment, diversity, people engagement) are included as performance criteria for both short-term and long-term incentives for Senior Management[610](index=610&type=chunk)[615](index=615&type=chunk) | Group | 2024 Total Compensation ($M) | Fixed/Variable Ratio | | :--- | :--- | :--- | | Senior Management (31 members) | 108.0 | 43% / 57% | | Executive Committee (excl. M-Board) | 48.5 | 43% / 57% | | Executive Vice Presidents | 48.2 | 45% / 55% | [Employees](index=134&type=section&id=E.%20Employees) As of December 31, 2024, STMicroelectronics had 49,602 employees, with the majority involved in manufacturing and distributed globally | Breakdown | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Total Employees** | **49,602** | **51,323** | **51,370** | | By Geography (2024) | of Employees | | :--- | :--- | | Asia | 17,965 | | Italy | 12,745 | | France | 11,528 | | Mediterranean | 5,374 | | Rest of Europe | 1,169 | | Americas | 821 | | By Function (2024) | of Employees | | :--- | :--- | | Manufacturing | 31,133 | | Research and Development | 9,257 | | Administration and General Services | 3,323 | | Divisional Functions | 3,192 | | Marketing and Sales | 2,698 | [Major Shareholders and Corporate Governance](index=136&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) [Major Shareholders](index=136&type=section&id=Major%20Shareholders) As of December 31, 2024, STMicroelectronics Holding N.V., indirectly controlled by the French and Italian governments, was the principal shareholder | Shareholder | Common Shares Owned | % of Total | | :--- | :--- | :--- | | STMicroelectronics Holding N.V. | 250,704,754 | 27.5% | | Public | 647,470,654 | 71.1% | | Treasury shares | 13,106,512 | 1.4% | | **Total** | **911,281,920** | **100.0%** | - ST Holding is controlled by the French government (via Bpifrance) and the Italian government (via MEF), with a shareholders agreement governing board appointments and requiring unanimous approval for ST Holding to vote its shares[668](index=668&type=chunk)[669](index=669&type=chunk) [Anti-Takeover Provisions](index=137&type=section&id=Preference%20Shares) The company has an anti-takeover mechanism through an option agreement with an independent foundation to acquire preference shares - An independent foundation (Stichting Continuïteit ST) holds an option to acquire up to **540,000,000 preference shares** to deter unsolicited takeovers not supported by the company's boards[672](index=672&type=chunk) - The preference shares, if issued, may remain outstanding for a maximum of two years, and no preference shares have been issued to date[672](index=672&type=chunk)[673](index=673&type=chunk) [Controls, Procedures, and Cybersecurity](index=159&type=section&id=Item%2015.%20Controls%20and%20Procedures) [Controls and Procedures](index=159&type=section&id=Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year 2024[789](index=789&type=chunk)[791](index=791&type=chunk) - Management's assessment, based on the COSO 2013 framework, concluded that internal control over financial reporting was effective as of December 31, 2024[798](index=798&type=chunk) - The independent auditor, Ernst & Young AG, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[799](index=799&type=chunk)[801](index=801&type=chunk) [Cybersecurity Risk Management](index=166&type=section&id=Item%2016K.%20Cybersecurity) The company manages cybersecurity within its Enterprise Risk Management framework, with dedicated teams and certifications ensuring resilience - Cybersecurity risk is managed within an Enterprise Risk Management (ERM) framework, with governance led by the Chief Audit & Risk Executive and overseen by the Executive and Audit Committees[835](index=835&type=chunk)[837](index=837&type=chunk)[839](index=839&type=chunk) - A dedicated Information Security team and a Cyber Security Incident Response Team are in place to monitor threats and manage incidents, with clear escalation paths to senior management[840](index=840&type=chunk)[842](index=842&type=chunk) - The company's cybersecurity maturity is periodically audited by independent third parties and holds key certifications, including ISO 22301 (Security and Resilience) and ISO/SAE 21434 (Automotive Cybersecurity)[844](index=844&type=chunk)[845](index=845&type=chunk) [Financial Statements and Notes](index=171&type=section&id=Item%2018.%20Financial%20Statements) [Consolidated Financial Statements](index=178&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for 2024 reflect a significant downturn, with decreased revenues, net income, and cash flow from operations | (In millions) | 2024 | 2023 | | :--- | :--- | :--- | | **Income Statement** | | | | Net Revenues | 13,269 | 17,286 | | Gross Profit | 5,220 | 8,287 | | Operating Income | 1,676 | 4,611 | | Net Income (Parent) | 1,557 | 4,211 | | **Balance Sheet (End of Period)** | | | | Total Assets | 24,743 | 24,453 | | Total Liabilities | 7,064 | 7,601 | | Total Parent Equity | 17,449 | 16,729 | | **Cash Flow Statement** | | | | Net Cash from Operating Activities | 2,965 | 5,992 | | Net Cash used in Investing Activities | (3,742) | (5,766) | | Net Cash used in Financing Activities | (155) | (267) | [Notes to Consolidated Financial Statements](index=185&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies, segment reporting changes, public funding, debt structure, and legal proceedings - Effective January 1, 2024, the company changed its reportable segments to AM&S, P&D, MCU, and D&RF, with prior year information restated for comparability[993](index=993&type=chunk)[1085](index=1085&type=chunk) - The company has significant public funding receivables of **$766 million** and liabilities of **$214 million** as of year-end 2024, primarily related to R&D and capital investment programs in Europe and China[987](index=987&type=chunk)[988](index=988&type=chunk) - Total long-term debt was **$2.95 billion**, including **$1.5 billion in senior unsecured convertible bonds** due in 2025 and 2027[1019](index=1019&type=chunk)[1020](index=1020&type=chunk) - The company has commitments of **$1.1 billion for outsourced foundry wafers** and **$1 billion for power purchase agreements** as part of its carbon neutrality goals[1122](index=1122&type=chunk) - A jury verdict in a patent infringement lawsuit resulted in a potential loss of **$32 million**, which the company is challenging through post-trial motions and intends to appeal if necessary[1126](index=1126&type=chunk)

Core Insights - STMicroelectronics has launched the Teseo VI family of GNSS receivers aimed at enhancing precise positioning for automotive and industrial applications [1][2] - The Teseo VI receivers are the first to integrate multi-constellation and quad-band signal processing in a single die, improving performance and safety for advanced driving systems [2][9] - The new receivers support various industrial applications, including asset tracking, mobile robotics, and smart agriculture, thereby broadening their market potential [1][2] Product Features - Teseo VI chips feature dual-Arm® Cortex®-M7 processing cores, enabling high performance and ASIL-level safety for assisted and autonomous driving applications [4][6] - The integration of ST's proprietary embedded Non-Volatile-Memory (PCM) technology reduces external memory needs, minimizing the bill of materials and simplifying manufacturing [8][10] - The GNSS devices support quad-band operations (L1, L2, L5, and E6) and can track only L5, enhancing robustness in challenging environments [7][9] Market Impact - The Teseo VI family is expected to accelerate the development of end-user navigation products, reduce time to market, and allow for compact designs [2][3] - The introduction of these receivers is anticipated to increase the operational areas for autonomous vehicles and support new industrial applications [9][10] - STMicroelectronics has established an ecosystem of suppliers and partners to support the Teseo VI product family, enhancing its market readiness [11]

Core Insights - STMicroelectronics is launching next-generation proprietary technologies for high-performance optical interconnects aimed at datacenters and AI clusters, addressing the growing demands of AI computing [2][4] - The new silicon photonics and BiCMOS technologies are set to be available in the second half of 2025, supporting 800Gb/s and 1.6Tb/s optical modules [2][5] Company Developments - ST's proprietary silicon photonics technology will enable the integration of multiple complex components into a single chip, while the next-gen BiCMOS technology will provide ultra high-speed and low power optical connectivity [3][4] - The manufacturing of these technologies will occur on 300mm processes in Europe, ensuring a high-volume supply for optical module development [4][5] Market Trends - The Pluggable Optics for Data Center Market is projected to grow from $7 billion in 2024 to over $24 billion by 2030, with a CAGR of 23% [5] - The market share of transceivers based on silicon photonics modulators is expected to increase from 30% in 2024 to 60% by 2030 [5] Collaborations - STMicroelectronics is collaborating with AWS to develop a new silicon photonics technology, PIC100, aimed at enhancing interconnection capabilities for various workloads, including AI [4]

Group 1 - STMicroelectronics NV has seen a stock price increase of 5.2% to $23.71 following an upgrade from Jefferies to "buy" and a price target increase to €34 from €23, with expected growth in the second half of 2025 driven by factors including content in Apple's upcoming iPhone 17 lineup [1] - The stock has been recovering since hitting a four-year low of $21.36 on February 3, although it remains down 42% year-over-year, with long-term pressure at the 100-day moving average limiting gains [2] - Call traders are showing increased interest in STMicroelectronics, with trading volume at triple the intraday average, particularly in the March 27 call, indicating a shift in sentiment as the stock's 50-day put/call volume ratio is higher than 90% of readings from the past year [3]

Group 1 - STMicroelectronics is experiencing negative stock price performance, which was anticipated following the assessment of headwinds in 2025 and lower long-term targets [1] - Weaker results were expected in the Q4 release, leading to an expectation that the shares will likely underperform in the near term [1]

STMicroelectronics Q4 & FY 2024 Financial Results January 30, 2025 Forward looking information Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risk ...

PR No: C3310C  STMicroelectronics Supervisory Board to propose new member at 2025 AGM Geneva – January 30, 2025 – STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announces that its Supervisory Board has agreed to propose for shareholders' approval at the Company's 2025 Annual General Meeting the appointment of Werner Lieberherr to the Supervisory Board of ST, in replacement of Janet Davidson whose mandate will expire at the end ...

PR No: C3309C  STMicroelectronics Reports Q4 and FY 2024 Financial Results Q4 net revenues $3.32 billion; gross margin 37.7%; operating margin 11.1%; net income $341 millionFY net revenues $13.27 billion; gross margin 39.3%; operating margin 12.6%; net income $1.56 billionBusiness outlook at mid-point: Q1 net revenues of $2.51 billion and gross margin of 33.8% Start of the company-wide program to resize global cost base*     Geneva, January 30, 2025 – STMicroelectronics N.V. ("ST") (NYSE:STM), a global se ...