ST raises data center performance to US$1 billion, expected to double next year and set record

[ Gearbest Technology News]Recently, European semiconductor company STMicroelectronics has raised its performance expectations for the data center business. The company said on July 2, local time, that it had raised its data center revenue forecast for fiscal year 2026 to approximately US$1 billion, doubling the previous forecast level of slightly more than US$500 million.

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STMicroelectronics also predicts that if related business progresses smoothly, next year's data center business revenue is expected to double this year's growth. After this statement was released, the company's stock price rose 10% intraday that day, rising to 65.21 euros, setting a new intraday high since September 2000.

The upward revision of data center business expectations is related to the company's recent cooperation and production capacity layout in this field. STMicroelectronics previously disclosed in February this year that it had signed a long-term semiconductor supply agreement with Amazon Cloud Technology and will supply a variety of chip products to its data centers in the next few years, with the contract scale reaching trillions of won. Products involved include mixed-signal chips for high-speed data transmission, microcontrollers, and analog and power semiconductors.

In terms of products, STMicroelectronics also announced in March this year the launch of mass production of the optical integrated circuit PIC100 based on silicon photonics technology. The product was developed by STMicroelectronics in cooperation with Amazon Cloud Technology and will be produced on 300mm wafers at the Kroll factory in France. According to the company's plan, the production capacity of PIC100 will be expanded to more than four times the current level before next year.

As investment in infrastructure related to cloud computing and artificial intelligence continues to advance, data centers have become a new growth direction for semiconductor manufacturers. STMicroelectronics’s upward revision of expectations also shows that it is accelerating its entry into the data center chip supply chain.