STMicroelectronics Secures Major Multi-Year AWS Deal

STMicroelectronics has expanded its strategic partnership with Amazon Web Services under a new multi-year, multi-billion-dollar commercial agreement announced today.

The acquisition further reinforces STMicroelectronics as an important supplier of semiconductors to AWS as the cloud computing giant steps up infrastructure investments to support AI and high-performance computing.

In the deal, ST will provide develop cutting-edge semiconductor technologies that will be used in its compute infrastructure by AWS. Some of the product areas covered by the collaboration include high-bandwidth connectivity solutions, high-performance mixed-signals devices, infrastructure management microcontrollers, and analog and power ICs aimed at improving energy efficiency in hyperscale data centers.

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AWS will use the proprietary technologies at STMicroelectronics to enhance the performance of its compute, reduce the operating costs, and have a much easier time scaling to satisfy the increasing demands of AI and the cloud. According to the companies, the solutions will allow AWS customers to lower the total cost of ownership, accelerate the development timelines, and manage the ever-growing data throughput demands.

Jean-Marc Chery, President and Chief Executive Officer of STMicroelectronics, said, “This collaboration confirms the strength of our technology portfolio and our ability to deliver at scale. Our solutions will support AWS’s next generation of infrastructure and help enable advances in AI, high-performance computing, and connectivity. This agreement also supports further growth opportunities across multiple end markets.”

The companies will also optimize the e-design automation workloads to the cloud taking advantage of the elastic compute capability of the AWS to speed up the chip design and reduce time-to-market.

Under the deal, ST issued warrants to AWS to acquire up to 24.8 million ordinary shares initially at an exercise price of $28.38 per share, which is exercisable within a period of seven years.