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STMicroelectronics NV (STM)

  • Wed, Nov. 11, 5:37 PM
    • "Our priority is No. 1: growth, and No. 2: resolve the problem in our digital products group," said Carlo Bozotti at a Morgan Stanley conference talk. Though he wouldn't rule out the possibility of STMicroelectronics (NYSE:STM) engaging in M&A in the future, he declared it's "not on the table today."
    • A long list of peers, including microcontroller rivals such as NXP, Freescale, Infineon, and Microchip, have been party to large mergers or acquisitions. Bozotti recently denied STMicro is interested in analog chipmaker Fairchild, after a report to the effect popped up.
    • Bozotti also suggested the industry inventory correction that contributed to STMicro's weak Q4 guidance could continue into Q1. "We did not expect such a material correction of inventory in the fourth quarter and maybe first quarter of next year ... Frankly in the last few weeks it (the global semiconductor market) was not that great."
    | Wed, Nov. 11, 5:37 PM | 2 Comments
  • Thu, Oct. 29, 3:58 PM
    • On his company's Q3 earnings call, STMicroelectronics (STM -5.7%) CEO Carlo Bozotti denied the French/Italian chipmaker is interested in acquiring analog/power management IC vendor Fairchild Semi (FCS -5.7%). Bloomberg reported on Tuesday STMicro is weighing a bid for Fairchild, two weeks after having reported Infineon and ON Semi have held talks with the company.
    • Both STMicro and Fairchild are down sharply, the former due to its soft Q4 guidance. Many other chip stocks are in the same boat.
    | Thu, Oct. 29, 3:58 PM | Comment!
  • Tue, Oct. 27, 11:34 AM
    • Bloomberg reports STMicroelectronics (STM -2.1%) is weighing a bid for U.s-based analog/power management IC vendor Fairchild Semi (FCS +4.8%). Sources caution STMicro might decide against such a move in favor of focusing on bottom-line improvement.
    • Two weeks ago, Fairchild was rumored to be talking with ON Semi and Infineon about potential deals. Yesterday, Bloomberg reported the French and Italian governments want STMicro to cut its dividend in order to have more flexibility to up its R&D spend.
    | Tue, Oct. 27, 11:34 AM | 3 Comments
  • Wed, May 27, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    | Wed, May 27, 3:00 PM | 41 Comments
  • Mon, Mar. 2, 1:41 PM
    • The Philadelphia Semi Index (SOXX +2.4%) has rallied to new highs after NXP announced it's buying microcontroller, network processor, and RF amplifier supplier Freescale for $16.7B after factoring net cash/debt, the biggest deal yet in the chip industry's ongoing consolidation wave. The Nasdaq is up 0.5%.
    • Microcontroller makers are among today's big gainers - NXP/Freescale assert they'll be the world's biggest supplier of general-purpose microcontrollers. Standouts include Atmel (ATML +6%) and STMicroelectronics (STM +3.4%), as well as Cypress (CY +3.1%) and merger partner Spansion (CODE +3.2%).
    • Other notable gainers include InvenSense (INVN +3.4%), Ambarella (AMBA +6.3%), Audience (ADNC +5.5%), Cirrus Logic (CRUS +3.7%), Cavium (CAVM +4.2%), ON Semi (ONNN +3.5%), Silicon Motion (SIMO +3.5%), InPhi (IPHI +3.8%), and TowerJazz (TSEM +5.5%).
    • With the Mobile World Congress as a backdrop, InvenSense has unveiled a 6-axis SoC that pairs a gyroscope and acceleromoter with a motion processor and related software/algorithms; the company claims 25%-50% better power consumption than rival solutions. It has also launched a software library meant to "provide sensor-assisted positioning in places where GNSS alone cannot provide desired accuracy."
    • Cavium has announced its OCTEON Fusion-M processor line for mobile base stations. The chips support up to 16 custom CPU cores running at 2GHz., and are declared by Cavium to enable "Smart Radio Heads" that can adapt to network conditions. They begin sampling in Q3.
    • Previously: Chip product launches: ARMH, EZCH, BRCM, NXPI, XLNX, IDTI
    | Mon, Mar. 2, 1:41 PM | 3 Comments
  • May 28, 2013, 2:36 PM
    Intel (INTC) is the buyer of ST-Ericsson's (STM, ERIC) GPS chip business, an Intel spokesman confirms - ST-Ericsson had announced the sale of the business without disclosing its acquirer or the price paid. The purchase should strengthen Intel's GPS receiver offerings for mobile devices, and might allow it to add GPS functionality to its notebook Wi-Fi chipsets.
    | May 28, 2013, 2:36 PM | 3 Comments
  • May 28, 2013, 9:17 AM
    ST-Ericsson (STM, ERIC) manages to sell its mobile connectivity/GPS chip business/IP to an unnamed "leading semiconductor company" for an undisclosed price. That allows the JV, whose baseband processor ops have posted huge losses, to save a bit of face as it winds down following a failure to secure a buyer for the entire unit. STM +2.6% and ERIC +4.3% as European equities rally.
    | May 28, 2013, 9:17 AM | 1 Comment
  • Jan. 18, 2013, 2:50 PM
    STMicroelectronics (STM -1.5%) and Ericsson (ERIC +2.5%) head in opposite directions after the WSJ reports JPMorgan has been hired to explore options for the baseband chip JV - a French paper reported the same in October. STM has already said it wants to exit the 50/50 JV, which is struggling to compete with Qualcomm, MediaTek, and others, by the end of Q3. Ericsson recently said it will take a $1.22B charge on ST-Ericsson for Q4, while adding it doesn't intend to buy STM's stake.
    | Jan. 18, 2013, 2:50 PM | 4 Comments
  • Nov. 26, 2012, 7:56 AM
    A fund backed by the Japanese government is set to pay $2.2B to buy 2/3 of chipmaker Renesas (RNECY.PK) from current owners Mitsubishi, NEC, and Hitachi, a source tells the Nikkei. Renesas, which rose 16.6% in Tokyo on the report, would reportedly shutter factories and cut as many as 5K jobs as part of the deal. Renesas is the top player in the microcontroller market, where it competes with Microchip, Freescale, STMicroelectronics, and others.
    | Nov. 26, 2012, 7:56 AM | Comment!
  • Oct. 12, 2012, 10:24 AM
    That didn't take long. STMicroelectronics (STM +9%) has issued a terse statement in which it "denies the existence of initiatives which can compromise the unity of the Company." That's in response to a Bloomberg report claiming the chipmaker is thinking of splitting up its analog and digital IC ops. But shares remain up strongly.
    | Oct. 12, 2012, 10:24 AM | 1 Comment
  • Oct. 12, 2012, 9:39 AM
    STMicroelectronics (STM +8.2%) is thinking of breaking itself up, sources tell Bloomberg. The company's analog chip business could be split up from its digital chip business, which is heavily exposed to the soft TV and set-top box markets, and mobile baseband chip JV ST-Ericsson, reported this week to be exploring "strategic options," might be sold. Samsung, which has been increasing its mobile chip exposure, is named as a potential buyer for struggling ST-Ericsson.
    | Oct. 12, 2012, 9:39 AM | Comment!
  • Feb. 27, 2012, 1:23 PM
    Entropic Communications (ENTR -0.2%), a maker of chips for cable and satellite gear, is acquiring the set-top box system-on-chip (SoC) assets of bankrupt Trident Microsystems for $65M. The move could bolster Entropic's ability to compete with set-top box SoC market leaders Broadcom (BRCM) and STMicroelectronics (STM).
    | Feb. 27, 2012, 1:23 PM | Comment!
  • Jul. 18, 2011, 9:02 AM
    Maxim Integrated (MXIM) is acquiring SensorDynamics, a developer of MEMS sensor chips. The acquisition should help Maxim compete against MEMS market leaders such as Texas Instruments (TXN), HP (HPQ), and STMicroelectronics (STM). Last year, Yole Development estimated the MEMS market will grow from over $7B in 2010 to $16B in 2014.
    | Jul. 18, 2011, 9:02 AM | Comment!
Company Description
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products used in different microelectronic applications, including automotive products, computer peripherals, telecommunications systems, consumer products, & control systems.
Sector: Technology
Country: Italy