STMicroelectronics was founded in 1957 and is the number one chipmaker in Europe. The firm has headquarters in Coppell, Texas, and is present in Asia too. Further, it has partnerships with Intel, Ericsson and other large entities.
But what’s funny is that I’ve never heard about it until recently. It makes sense, European firms (for the most part) usually fly under the radar, but this one is particularly interesting because of its initiatives to drive future technologies.
Those who know about the firm refer to it as ST and see it as a leading producer for chips related to the present and the future. For instance, it provides chips that cater to smart cars, manufacturing machines, and even devices for consumers.
STMicroelectronics is an intriguing firm because it seems to fly under the radar while being a key player in the automotive and discrete chip industry. For those who don’t know what discrete chips are, PCMag notes that it is “an elementary electronic device constructed as a single unit.”
The magazine states that “before the advent of integrated circuits (chips), all transistors, resistors, capacitors, and diodes were discrete. Discrete components are widely used in amplifiers and other electronic products that use large amounts of current. On a circuit board, they are intermingled with the chips, and there is hardly any electronic product that does not have at least one or two discrete resistors or capacitors.”
That’s an essential point, as that means discrete chips are a fundamental component of most electronic products. That not only represents a revenue stream but also serves as an area for in-depth research and development opportunities. Analog chips, microcontrollers, imaging chips, and more aspects are critical components of the STMicroelectronics product line and bolster its revenues and growth.
While revenues have fallen slightly, we do know that it remains financially healthy.
The Demand Will Arrive
What does the future call for? More technology will be present in day to day lives. The technology will revolve around sustainable futures. Advanced technologies will help to spur efficiency and further space ventures.
From connected and smart low-emission cars to more powerful smartphones, demand will only pick up further over the next few years. Producers such as STMicroelectronics must account for and address the demand that will inevitably arise.
The problem the manufacturer faces at the current moment is the decrease in global activity due to the coronavirus pandemic. It is not only demand that has declined but disruptions its own logistics that posed and will pose further problems. The company should see similar problems in the near future due to COVID-19 still having a strong presence in the world today.
We’re seeing that COVID-19 is ticking up again in places such as Japan, the United States, and other pockets around the globe, so 2020 itself might be quite a year for defensive actions.
As such, the company focuses on the long-term while remaining financially healthy in the present. It is also gearing up to become more integral in solar energy, IoT, wireless connectivity, and smart mobility. The company looks like one to watch as AMD races forward, and Intel finds itself in a slew of problems.