.jpg)
2 hours ago
2
Article content
(Bloomberg) — Amazon.com Inc.’s cloud service AWS is deepening its ties with Franco-Italian chipmaker STMicroelectronics NV to secure semiconductor technologies for its data centers.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
STMicro will supply various semiconductors to AWS, including chips to support high-bandwidth connectivity and for energy-efficient power management required for hyperscale data center operations, STMicro said in a statement on Monday.
Article content
Article content
Under the agreement, AWS received warrants to acquire as many as 24.8 million ordinary STMicro shares. The warrants will vest in tranches over time, tied to payments for STMicro’s products. AWS can chose to exercise the warrants in one or more transactions over a seven-year period at an initial exercise price of $28.38. For AWS, it is at least its second investment in a chip company.
Article content
Article content
STMicro shares rose 6.5% at market open to $26.51.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The global build-out of data centers to support artificial intelligence technologies is driving new business for semiconductor companies. Designers and manufacturers of advanced AI chips — including Nvidia Corp., Advanced Micro Devices Inc. and Taiwan Semiconductor Manufacturing Co. Ltd. — have been at the forefront of the boom. Makers of more mature analog chips have also seen rising demand for applications in AI data centers, including power management, sensors and cooling. German Infineon Technologies AG predicted €2.5 billion ($3 billion) in AI-related revenue in its 2027 fiscal year, it said last week – a tenfold increase in AI sales within three years.
Article content
STMicro, which is also a supplier for Tesla Inc. and Apple Inc., forecast first-quarter revenue two weeks ago that beat analysts’ estimates. Demand from consumer electronics customers showed signs of recovery at the end of last year after a prolonged demand slump. However, the company’s shares fell after the chipmaker’s report showed uneven recovery across different end markets. STMicro Chief Executive Officer Jean-Marc Chery said the automotive market is “not yet stable” in a call with analysts.
Article content
Advertisement 1
English (US)