ST focuses on four key growth areas

Carlo Bozotti, president and CEO, STMicroelectronics.

Carlo Bozotti, president and CEO, STMicroelectronics.

According to Carlo Bozotti, president and CEO of STMicroelectronics, there are four key growth areas for the company:
* Smart meters and energy saving.
* Smart consumer devices.
* Trust and data security.
* Healthcare and well being.

Bozotti was speaking at the STMicroelectronics’ media roundtable held this evening at the Greater Noida, India office.

Year 2010 goes down in ST’s history as a year of records. Both ACCI and IMS surpassed the $1 billion mark in quarterly revenue. Year 2010 was also a year of recovery — with ST achieving $1,3 billion revenue and a net operational cashflow of $961 million. ST also improved its net financial position to $1.7 billion.

In 2011, ST promises to expand and continue to grow its customer base. This year, ST predicts that the global semicon industry will grow 5-8 percent.

ST forsees its second major block of growth in manufacturing. It has aggressive ramp-up planned in application areas, such as:
* Smart power automotive field.
* New platforms and solutions in smartphones and tablets.

Even ST-Ericsson, which was in restructuring mode, is now secure. This year, said Bozotti, it will be a year of transition from old, legacy products to new.

The last priority is to achieve 3D SoCs, complex MCUs and twin MEMS. Bozotti noted that the company plans to combine accelerometer and gyroscope in a single application. It will also add innovative solutions to smartphones and tablets.

As for R&D, Bozotti claimed that the company will remain committed. “We strongly commit to R&D in both good and bad times,” he noted.

ST in India
ST has been going strong in India up until now, having expanded its workforce to 2,200 personnel. The focus is now on new products and solutions. This represents 15-20 percent of the entire ST’s activities. Some of the areas that ST is currently focusing on in India, include:
* VLSI library platform on 32nm.
* Integrated TV.
* Powertrain and entertainment chips for automotives.
* Reference designs for local and global customers for digital TV, energy, etc.

So far, ST has filed for over 370 patents in India, of which 170 patents have been granted. Bozotti added that ST is also focusing on new solutions — eg., solar PV. It is also developing the local market for key customers. One such arrangement has been the Dish TV for STBs.

Bozotti said: “For ST, the concept of sustainable excellence is an extension of our pioneering work in environmental responsibilities. We anticipate another good year for ST. India will play a key role in all of this.”

Francois Guibert, executive VP and president Greater China & South Asia Region, STMicroelectronics, presented an overall performance of his region. For instance, the semicon TAM for China is said to be $76.2 billion, while that of Taiwan is about $21.6 billion. In contrast, India stands at $3.8 billion.

In 2010, ST’s Greater China and South Asia region accounted for $4,53 billion sales, which represents 44 percent of all sales. The region currently has 23,700 employees — accounting for over 40 percent of the company’s hires. If this isn’t enough, ST also has three design centers in Asia — China, India and Singapore — making up over 25 percent of ST’s headcount! Greater China and South Asia also accounted for 44 percent of overall sales and 49 percent of wafer production.

In India, the electronics market was said to be around $45 billion in 2010. The electronics manufacturing revenue was said to be $32 billion in 2010 and this will likely go up to $43 billion by 2013. India is said to be moving with the R&D and there should be a hike in manufacturing over the next five to 10 years.

ST’s focus on the Indian market, as per market drivers, is as follows: digital STB, digital security, wireless communications, LED lighting, automotive, smart grid, solar PV, etc. ST also has four university joint labs in India, besides its ‘Made in India’ STB success story.

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