STMicroelectronics has announced an expanded strategic collaboration with Amazon Web Services (AWS) through a multi-year, multi-billion USD commercial engagement serving several product categories. The collaboration establishes ST as a strategic supplier of advanced semiconductor technologies and products that AWS integrates into its compute infrastructure, enabling AWS to provide customers with new high-performance compute instances, reduced operational costs, and the ability to scale compute-intensive workloads more effectively.
As part of this expanded relationship, ST will work with AWS to optimise electronic design automation (EDA) workloads in the cloud. AWS’s scalable compute power enables silicon design acceleration, parallelises design tasks, and gives engineering teams the flexibility to handle dynamic compute demands and speed products to market.
Commercial Agreement
This engagement covers a broad range of semiconductor solutions leveraging ST’s portfolio of proprietary technologies. ST will supply specialised capabilities across high-bandwidth connectivity, including high-performance mixed-signal processing, advanced microcontrollers for intelligent infrastructure management, as well as analogue and power ICs that deliver the energy efficiency required for hyperscale data centre operations.
The collaboration will help customers reduce the total cost of ownership and bring products to market faster. ST’s specialised technologies help AWS address the increasing demands for compute performance, efficiency, and data throughput required to support growing AI and cloud workloads.
Jean-Marc Chery, ST President & CEO, commented: “This strategic engagement establishes ST as an important supplier to AWS and validates the strength of our innovation, proprietary technology portfolio, and proven manufacturing-at-scale capabilities. Our advanced semiconductor solutions will directly power AWS’s next-generation infrastructure, enabling its customers to push the boundaries of AI, high-performance computing, and digital connectivity. This collaboration positions us ideally for further scale-up across multiple market segments, from data centre infrastructure to AI connectivity, positioning ST at the centre of the AI revolution.”
ST has issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares of ST. The warrants will vest in tranches over the term of the agreement, with vesting substantially tied to payments for ST products and services purchased by AWS and its affiliates. AWS may exercise the warrants in one or more transactions over a seven-year period from the issue date at an initial exercise price of $28.38.
