STMicroelectronics is one of the world’s largest semiconductor companies with net revenues of US$10.0 billion in 2007.

The Company’s 2007 sales were well balanced among the semiconductor industry’s five major high-growth sectors (percentage of ST’s sales in 2007): Communications (37%), Consumer (17%), Computer (16%), Automotive (15%) and Industrial (15%).

According to the latest industry data from iSuppli, ST is the world’s fifth largest semiconductor company with market leadership in many fields. For example, ST is the leading producer of application-specific analog chips and power conversion devices. It is also the #1 supplier of semiconductors for the Industrial market and for set-top box applications, and occupies leading positions in fields as varied as discrete devices, automotive integrated circuits and the rapidly expanding market for micro-electromechanical systems (MEMS) .

Product Portfolio
ST aims to be the leader in multimedia convergence applications and power solutions, offering one of the world’s broadest product portfolios, including application-specific products containing a large proprietary IP content and multi-segment products that range from discrete devices to high-performance microcontrollers, secure smart card chips and MEMS (Micro-Electro-Mechanical Systems) devices.

The Company provides solutions for a wide array of Digital Consumer applications, with a particular focus on set-top boxes, digital TVs and digital audio, including radio.  In the Computer Peripherals arena, ST provides leading solutions in data storage, printing, visual display units, power management for PC motherboards, and power supplies. A wide range of ST’s ASSPs power sophisticated Automotive systems such as engine control, vehicle safety equipment, door modules, and in-car infotainment  The Company also supplies industrial ICs for factory automation systems, chips for lighting, battery chargers and power supplies, as well as chips for advanced Secure Access applications.

ST pioneered and continues to refine the use of platform-based design methodologies for complex ICs in demanding applications such as mobile multimedia, set-top boxes and computer peripherals. The balanced portfolio approach allows ST to address the needs of all microelectronics users, from global strategic customers for whom ST is the partner of choice, for major System-on-Chip (SoC) projects to local enterprises that need fully-supported general-purpose devices and solutions.

To maximize the benefit of scale that is becoming increasingly important in some semiconductor markets, ST announced the creation of two joint ventures in 2008.  In the memory field, ST, Intel and Francisco Partners formed a new company, Numonyx, dedicated to providing non-volatile memory solutions, including NAND and NOR Flash memories as well as MCP (multi-chip package) memory solutions, for a wide variety of consumer and industrial applications. ST holds a 48% share in Numonyx.

In the wireless arena, ST and NXP merged their key wireless semiconductor operations into a joint venture, ST-NXP Wireless, in which ST owns an 80% share, which is a top three supplier to the mobile handset industry. To further increase scale and ST’s competitive position, ST and Ericsson in August 2008 announced their intention, subject to regulatory approvals, to merge Ericsson Mobile Platforms and ST-NXP Wireless to form a new company that will be jointly owned by ST and Ericsson.  

Research & Development and Manufacturing
Since its creation, ST has maintained an unwavering commitment to R&D and is one of the industry’s most innovative companies. ST’s process technology portfolio includes advanced CMOS logic (including embedded memory variants), mixed-signal, analog and power processes. In advanced CMOS, ST is a partner in the IBM consortium for the development of next-generation process technologies, including 32nm and 22nm CMOS process development, design enablement and advanced research adapted to the manufacturing of 300mm silicon wafers. ST and IBM also cooperate at ST’s Crolles 300mm facility in the development of value-added CMOS derivative SoC technologies.

ST has a worldwide network of front-end (wafer fabrication) and back-end (assembly, packaging and test) plants. ST’s principal wafer fabs are presently located in Agrate Brianza and Catania (Italy), Crolles, Rousset and Tours (France), and Singapore.

The wafer fabs are complemented by highly efficient assembly and test facilities located in China, Malaysia, Malta, Morocco and Singapore.

Alliances
ST has developed a worldwide network of strategic alliances, including product development with key customers, technology development with customers and other semiconductor manufacturers, and equipment- and CAD-development alliances with major suppliers. These industrial partnerships are complemented by a wide range of research programs conducted with leading universities and research institutes around the world, in addition to playing a key role in Europe’s advanced technology research programs such as MEDEA+ and industry initiatives such as ENIAC (European Nanoelectronics Initiative Advisory Council).

Sustainable Excellence
STMicroelectronics was one of the first global industrial companies to recognize the importance of environmental responsibility, its initial efforts beginning in the early 1990s. Since then ST has made outstanding progress; for example, energy and water consumption per product unit have been reduced by 5% and 9% per year, respectively, since 1994 and CO2 emissions have been reduced by 61% over the same timescale.  In 2006 and 2007, ST achieved absolute reductions in CO2 emissions despite increased production volumes.

In addition, ST has gone far beyond existing legal requirements in almost completely eliminating the use of hazardous substances such as lead, cadmium, and mercury.  Since 1991, the Company’s sites have received more than 100 awards for excellence in all areas of Corporate Responsibility, from quality to corporate governance, social issues and environmental protection.

As a member of the EICC (Electronic Industry Citizenship Coalition), ST is committed to complying with the EICC code of conduct and to promoting and implementing the approach in our supply chain, in collaboration with our suppliers and subcontractors.

Our corporate responsibility policy is detailed in our Principles for Sustainable Excellence, which detail our company code of conduct in all areas. A signatory of the UN Global Compact since 2000, ST publishes an annual Corporate Responsibility Report* that represents a balanced and reasonable presentation of our performance, in accordance with the GRI G3 Guidelines in terms of economic, social, environment, health & safety, product responsibility and supply chain.

Facts and Figures
STMicroelectronics was created in 1987 by the merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France. Since its formation, ST has grown faster than the semiconductor industry as a whole and it has been one of the world’s Top Ten semiconductor suppliers since 1999.

The group totals over 45,000 employees, 16 advanced research and development units, 39 design and application centers, 15 main manufacturing sites and 78 sales offices in 36 countries.

Corporate Headquarters, as well as the headquarters for Europe and for Emerging Markets, are in Geneva. The Company’s U.S. Headquarters are in Carrollton (Texas); those for Asia-Pacific are based in Singapore and Japanese operations are headquartered in Tokyo. The “Greater China” region, which includes Hong Kong, China and Taiwan, is headquartered in Shanghai.

ST’s shares are traded on the New York Stock Exchange (NYSE: STM), on Euronext Paris, and in Milan on Borsa Italiana. As of December 31, 2007, the Company had approximately 910 million outstanding shares, 71.3% of which are publicly traded on the various stock exchanges. ST held 1.2% of the float in its Treasury and the balance of the shares is held by STMicroelectronics Holding II B.V. (27.5%), a company whose shareholders are Cassa Depositi e Prestiti and Finmeccanica of Italy, and Areva of France.

(*) http://www.st.com/stonline/company/cr/reports/index.htm

Updated November 2008