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STMicroelectronics CEO sees China as A Dynamic Semiconductor Market amidst the China-US Conflict


Amid escalating chip tensions between the United States and China over semiconductor technology, French-Italian semiconductor giant STMicroelectronics remains steadfast in its commitment to China as a key growth market, according to CEO Jean-Marc Chery.

STMicroelectronics considers China a growing semiconductor Market

In 2022, China only held the 6th place in the semiconductor market (7%), and is predicted to grow only a 6.16% annual growth rate (CAGR 2024-2027). The US-China has impacted the growth of the Chinese semiconductor market with the US regulations set to restrain enterprises from selling and exporting advanced technology, and advanced chip manufacturing equipment to China, preventing this country from developing their high-tech chip.

Semiconductor Market

China remains an important growth market for French-Italian semiconductor STMicroelectronics, despite increasing U.S.-China tensions over semiconductors. At a recent Citi technology conference in London, Jean-Marc Chery, the CEO of STMicroelectronics emphasized the company’s resilience in the face of challenges posed by U.S.-China semiconductor disputes. He expressed that the company is not discouraged by Chinese chipmakers’ intentions to invest in older generations of chips.

The Reasons for STM’s Trust

Chery underscored the strategic importance of maintaining a presence in the Chinese market, particularly in sectors such as electric vehicles, digital power controls, and renewable energy, where STMicroelectronics sees significant opportunities for growth.

Semiconductor Market

As a prominent player in automotive chips and microcontrollers, STMicroelectronics is looking for a robust key to step up in the race to compete with other semiconductor giants in reducing chip nodes. According to industry group SEMI, mainland China, fueled with assistance from substantial government subsidies, is predicted to add about 12% to empowering the company capacity.

For us it is a risk for sure to have seen this massive investment of mainstream technology by Chinese chipmakers, Chery said to Reuters “But it’s also an opportunity.” He also reiterated STMicroelectronics’ commitment to leveraging local partnerships and investments to capitalize on the growing opportunities in the Chinese market.

He also stated that the country currently accounts for 15% of the company’s revenue, with sectors such as silicon carbide poised for witness rapid growth. Despite the complexities and challenges posed by geopolitical tensions, STMicroelectronics remains interested in China’s potential as a key driver of its future growth and innovation initiatives.

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