STMicroelectronics (NYSE: STM) has announced an expanded strategic collaboration with Amazon Web Services (AWS) under a multi-year, multi-billion-dollar commercial agreement covering several product categories. Under this arrangement, ST will supply advanced semiconductor technologies that AWS will integrate into its compute infrastructure to support high-performance cloud and AI workloads.
The agreement positions ST as a strategic supplier of semiconductor solutions for AWS, enabling improved compute performance, lower operating costs, and greater scalability for compute-intensive applications. The collaboration includes a wide range of semiconductor solutions based on ST’s proprietary technologies.
These include high-bandwidth connectivity solutions, high-performance mixed-signal devices, microcontrollers for infrastructure management, and analog and power ICs designed to improve energy efficiency in hyperscale data centers. By leveraging these technologies, AWS customers can reduce total cost of ownership and shorten development cycles, while meeting rising demands for performance, efficiency, and data throughput driven by AI and cloud applications.
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.”
As part of the expanded relationship, ST and AWS will also work together to optimize electronic design automation (EDA) workloads in the cloud. AWS’s scalable compute capabilities will help accelerate chip design, improve parallel processing, and reduce time-to-market for new semiconductor products.
In connection with the agreement, ST has issued warrants to AWS for the purchase of up to 24.8 million ordinary shares. The warrants will vest in stages over the term of the agreement, largely linked to AWS’s purchases of ST products and services. AWS may exercise the warrants over a seven-year period at an initial exercise price of $28.38 per share.
ST stated it has around 50,000 employees worldwide and operates advanced manufacturing sites as an integrated device manufacturer. The company works with more than 200,000 customers and thousands of partners to develop technologies supporting smarter mobility, improved energy efficiency, and large-scale deployment of connected and autonomous systems. ST also reaffirmed its progress toward carbon neutrality across its emissions footprint and its target of achieving 100% renewable electricity sourcing by the end of 2027.
