STMicroelectronics (STM, Financial) has unveiled significant components of its strategy to revamp its global manufacturing operations. This initiative, which builds on an announcement from October 2024, aims to boost the company's competitive edge and reinforce its status as a major player in the semiconductor industry. The plan underscores the importance of utilizing strategic resources around the globe, focusing on research and development, design, and large-scale manufacturing.
The company’s comprehensive program seeks to enhance efficiency through increased automation and the integration of artificial intelligence in its European operations. Central to this effort is a focus on advanced manufacturing facilities, particularly in 300mm silicon and 200mm silicon carbide, with substantial investments planned over the fiscal years 2025, 2026, and 2027. These investments are intended to support the global customer base by improving technology research and high-volume production capabilities.
Part of the initiative includes resizing STMicroelectronics' cost base—a move expected to involve up to 2,800 voluntary employee departures worldwide over three years, in addition to usual turnover. This strategic reshaping is projected to achieve annual cost savings that reach high triple-digit million-dollar figures by the end of 2027.
