High Tech. a Catania: il caso STMicroelectronicsHigh Tech. a Catania: il caso STMicroelectronics

Dr. Manlio La Duca

FACOLTA’ DI ECONOMIAFACOLTA’ DI ECONOMIA

WELCOME!WELCOME!

2

To offer strategic independence to

our partners worldwide, as a

profitable and viable broad range

semiconductor supplier

Mission

3

We aim at becoming the undisputed leader in multimedia convergence and power applications, dedicating

significant resources to productinnovation and increasingly becoming

a solution provider

Vision

Macroeconomic trends – GDP growthMacroeconomic trends – GDP growth

World GDP growth

4.7%

2.2%2.7%

3.6%4.4%

5.0% 5.2%

1.7%

3.3% 3.6%3.3%

-2.1%

4.9%

00 01 02 03 04 05 06 07 08 09 10E 11E 12E

% Y-o-Y

Source : IMF, World bank, June 2010

Emergingcountries continue

to bring tractionBubble

Recession

Back to growthdriven by US and

emerging countriesSlowrecovery

Recession

Year

GLOBAL OUTLOOK(Real GDP; quarterly percent change from one year earlier, unless noted otherwise)

• Global growth is forecast to recover in all regions but remain below precrisis levels over the medium term. • Accordingly, relative to precrisis trends, some activity has been permanently lost. Losses are particularly large in emerging Europe and the Commonwealth of Independent States (CIS), where recovery in many countries will be slow and medium-term growth rates appreciably lower than before the crisis. • Recovery is also expected to be sluggish in a number of advanced economies, although less so in the United States than in the euro area and Japan.

Semiconductor Ranking 2009 – ST ranked #5

Source : iSuppli Corporation supplied rankings for 2009(foundries excluded)

Rank RankCompany Country of origin

Revenue2009/2008

changes Market share2009 2008 (million$ USD)

1 1 Intel Corporation USA 32 095 -5.00% 14.20%2 2 Samsung Electronics South Korea 17 123 1.30% 7.60%3 3 Toshiba Semiconductors Japan 10 640 -4.00% 4.70%4 4 Texas Instruments USA 9 612 -13.20% 4.20%5 5 STMicroelectronics FranceItaly 8 400 -18.60% 3.70%6 8 Qualcomm USA 6 475 0.00% 2.90%7 9 Hynix South Korea 5 940 -1.40% 2.60%8 6 Renesas Technology Japan 5 664 -19.30% 2.50%9 12 AMD USA 5 038 -7.60% 2.20%

10 7 Sony Japan 4 670 -32.80% 2.10%11 11 NEC Semiconductors Japan 4 403 -24.40% 1.90%12 10 Infineon Technologies Germany 4 340 -27.10% 1.90%13 14 Broadcom USA 4 198 -9.60% 1.90%14 16 Micron Technology USA 3 995 -9.90% 1.80%15 24 MediaTek Taiwan 3 524 21.70% 1.60%16 19 Elpida Memory Japan 3 498 -2.80% 1.50%17 13 Freescale Semiconductor USA 3 344 -32.70% 1.50%18 15 Panasonic Corporation Japan 3 330 -25.60% 1.50%19 17 NXP Netherlands 3 247 -19.90% 1.40%20 18 Sharp Electronics Japan 2 886 -20.00% 1.30%

Top 20 142 422 -10.70% 62.80%All Other companies 84 313 -15.20% 37.20%TOTAL 226 735 -12.40% 100.00%

8

STMicroelectronics

A Global Semiconductor Company

13 %Americas 18 %

Japan &Korea45 %

Greater China & South Asia

24 %EMEA (1)

Sales by region % of Q3’10 sales

(1) Europe, Middle East & Africa(2) Including revenues from ST-NXP Wireless for the month of January 09 and

ST-Ericsson starting February 09(3) Including ST-Ericsson

§ 2009 sales : US$ 8.51 billion (2)

§ Q1 2010 sales : US$ 2.325 billion § Approx. 51,000 employees in the group (3)

§ 15 main production sites§ Advanced R&D centers in 10 countries

9

STMicroelectronics Awards

ST has received more than 100 awards and accolades worldwide, in

the areas of both Quality and Environmental Protection,

including the European Quality Award and the Malcolm Baldrige National

Quality Award

10

Shareholding Structure*

* At December 31, 2009(1) Based on Corporate Governance rights between FT1CI/Areva/CEA and CDP pursuant to STH Shareholders’ Agreement. (2) New York Stock Exchange, Euronext, Paris and Borsa Italiana, Milano(3) In addition to the 27.5% held by ST Holding II B.V. and the 68.9% held by the Public, 3.5% are held by the Company as Treasury shares

AREVA CEA

FT1C150 % (1)

Cassa Depositi e Prestiti (CDP)50 % (1)

ST Holding N.V.100 %

ST Holding II B.V.27.5 %

Public (2) (3)

68.9%

STMicroelectronics N.V. (ST)

Human ResourcesP. Chastagner

11

Organization

Finance C. Ferro

Infrastructures & Services

O. Kosgalwies

Product QualityExcellenceG. Auguste

Greater China & South Asia

F. Guibert

Japan & Korea

M.L. Cassis

AmericasR. Krysiak

Front-End Manufacturing

O. Bellezza

Computer & Comm.Infrastructure

G. Bertino

Automotive Product Group

P. Grimme

Home Entertainment & DisplaysP. Lambinet

Packaging and Test Manufacturing

J. See

Analog, Power & MEMS

C. Papa (acting)

Microcontrollers, Memories & Smartcards

C. Dardanne

Technology R&D J-M. Chery

President & CEOC. Bozotti

EMEAA. Cuomo

Industrial & Multisegment Sector

C. Papa

Product GroupsSales & Marketing

COOA. Dutheil

Manufacturing & Technology R&D

LegalP. Ollivier

CommunicationC.E. Ottaviani

AdministrationT. Hooghiemstra

ComplianceA. Grenville

CEO C. Bozotti

Corporate Staff Functions

Business Dev. & Strategic Planning

L. Lietar

ST Catania site Yesterday/Today

Satellite view

vBUILDABLE AREA 183.520m2

vAREA OCCUPIED BY BUILDINGS 59.000m2

vCLEAN ROOM 21.702m2

YearYear Surface AreaSurface Area EmployeesEmployees Wafer Wafer DimensionsDimensions LithographyLithography

1960 The first brick laid

1962 9500 m² 1” 200µ

1970 17000 m² 1528 2”/3” 100µ

1980 25000 m² 1716 4” 10µ

1990 27000 m² 1026 5” 2µ

2000 76000 m² 3848 6” / 8” 0,25µ

2001 88194 m² 4141 6” / 8” 0,18µ

2002 88194 m² 4504 6” / 8” 0,15µ

2004 164800 m² 4768 6” / 8” 0,13µ / 0,11µ

September2010

183520 m ² 4.041 6” / 8” 0,11µ

Evolution of Catania site

* since March 2008 * since March 2008 496496 employees have been employees have been

Admin & Site Services EHS,Quality&Sust. Excellence Operations Planning,Logistic&

PurchasingR&D Techno&Product

Dev Marketing Support & Staff functions

Total 184 214 2074 125 962 171 311

0

1000

2000

3000 FUNCTIONAL AREAS

Employees at ST Catania

UNIV. DEGREE 1395

H.S. DIPLOMA 2528

OTHER 118

EMPLOYEES' EDUCATION

TrainingTraining

Administration Administration

Human ResourcesHuman Resources

Purchasing & Logistics Purchasing & Logistics

General ServicesGeneral Services

Security and Safety ServicesSecurity and Safety Services

Site ActivitiesFront End: Front End: FabFab. 6“ and 8“. 6“ and 8“

Wafer Wafer EpitaxyEpitaxy: 6“ and 8“: 6“ and 8“

Research and DevelopmentResearch and Development

Quality and Reliability Quality and Reliability

Marketing and Customer ServiceMarketing and Customer Service

Information Communication TechnologyInformation Communication Technology

ST Product DivisionsST Product Divisions& Groups& Groups

ST R&DST R&D

• Definition of the specifications• Development plan • Project validation

• New Technologies• New Platforms of Design•Technology sharing

UniversityUniversityCustomerCustomer

• Customer Support• Cooperation• Joint projects• Identification of:

New ProductsNew Applications

…the “Flywheel”…the “Flywheel”of developmentof development

Strategic Cooperation

• Graduation thesis/internships• Basic research support• New materials study

ü 2009 (ytd): Graduation thesis/Internships

performed at ST Catania:

§ 56 Graduation Theses

§ 35 Internships

•All graduation thesis completed at ST Catania (more than 900) are available on the INTRANET, Thesis Archive http://elib.ctn.st.com/TSLib/

Catania site Graduation thesis and internships

University graduates hired 2000-2009

125

63

287

50

533

Physics

Chemistry

ComputerScience

Other

Elect./TelecEngineering

2001 2002 2003 2004 2005 2006 2007 2008 TOT

§STUDENT THESES§INTERNSHIPS

83 116 93 145 185 133 87 86 928928

Collaboration/Research at ST Catania

In Catania: 962 researchers, 719 of whom are university graduated

•• SeveralSeveral groupsgroups engagedengaged in in longlong--termterm researchresearch and in the and in the developmentdevelopment ofof highhigh--

levellevel architecturesarchitectures

Collaboration with public and Collaboration with public and

universityuniversity--sponsored sponsored

organizations on the ST organizations on the ST

Catania site premisesCatania site premises

•• Total Surface: more than 1000 m²Total Surface: more than 1000 m²

19

Sources: ST

ST Q3 2010 sales100%=US$ 2.657 billion

Computer12 %

Communications*35 %

Industrial & Others

8 %

Consumer12 %

Automotive14 %

Sales by Market Segment / Channel*

Distribution*19 %

* Sales recorded by ST-Ericsson and consolidated by ST are included in Communications and Distribution

20

Sales by Operating Segment

ST Q3 2010 sales 100% = US$ 2.657 billion

Wireless25 %

35 %

Industrial & Multisegment Sector

Others

1%ACCI*39 %

* ACCI : Automotive, Consumer, Computer and Telecom Infrastructure

2010 ACCI Products and Wins

Digital Consumer§New high-end STi7108 SoC, enabling 3D-ready hybrid Internet/broadcast-TV Set-

top-boxes.

Automotive Electronics§Several Body Control Modules design wins for 32-bit MCUs in Europe and the US.§Significant share gained in a major worldwide engine-control management

platform, covering all car segments.

Automotive Infotainment§ Important Cartesio+ design win from a leading OEM, targeting Japan.

Computer peripherals§Two design wins with a world-leading printer manufacturer for inkjet Multi-Function

Printers

Communication Infrastructure§Four important ASIC designs with major customers – three of them in 32nm

process technology

21

2010 IMS Products and Wins

MEMS§A 3-axis gyroscope with digital output selected for a next-generation smartphone.§Continued momentum for accelerometers and gyroscopes in consumer, mobile

and gaming applications.

Healthcare§Agreement for the development and supply of a wireless MEMS sensor for a new

platform enabling better management of glaucoma patients

Power §Production ramping up for DC/DC converters ICs for the power management of

AMOLED displays in mobile-phone applications from two major global players.§Key design wins in power conversion ICs, including one for a kit to be used in a

new 2011 TV platform and one from a leading game-console maker. §Several design wins in power transistors for automotive, computer and photovoltaic

applications

Memory & Microcontrollers§Several additions to STM32 general-purpose MCUs family (offering up to 1 Mbyte

of Flash, Value Line…).§ Launch of an innovative dual-interface EEPROM chip.

.

22

2010 ST-Ericsson Products and Wins

23

§ Announced numerous enhancements to U8500, its advanced smartphone platform, also breaking through 1.2 Ghzperformance barrier

Smart mobility & multimedia § TD-SCDMA technology selected by HTC for its smartphones

in China

§ Cooperation with China Mobile on TD-LTE development

§ Launched U6715, a new low-cost, compact and very power-efficient Android-ready platform, broadening the smartphonesegment to the mass market

§ Selected by Sagem Wireless as its platform provider for future Sagem Wireless devices

23

24

50/50 JV with Ericsson

Products

Major Customers

Automotive, Consumer, Computer and

Communication Infrastructure (“ACCI”)

Industrial and Multisegment Sector

(“IMS”)Wireless

Home Entertainment

& Displays

Computer & Communication

Infrastructure

Automotive Products

Group

Analog, Power and

MEMS

Microcontrollers, Memories and

SmartcardsMajor Product Lines

Business Segments

Customer update

25

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Diversified Customer Base

2009 Top 30* OEM and Top EMS Customers

* Alphabetically listed by main application sector

Consumer

Computer

AutomotiveCommunications

EMSIndustrial

HuaweiNokiaResearch in MotionSony EricssonSamsung

ADBCisco/Scientific AtlantaGarminLG ElectronicsNintendoPacePanasonicPhilipsSagemSharpThomson (now Technicolor)

DeltaGemaltoSiemens

AppleDellEastman KodakHPSeagateWestern Digital

BoschContiDelphiDensoMarelli

Cal-Comp.ElcoteqFlextronicsHonHai FoxconnJabilSanmina - SCI

Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110

27

GenesisMicrochip Wireless Mobile Platforms

Recent Initiatives & Heading for the Future

50%

Headcountrealignment

ST-Ericsson costrealignment

ST-NXPsynergy plan

Manufacturingrestructuring

5 yearsR&D grants

secured

Micron to acquireNumonyx

Advancing Process R&D Partnerships

ST & Philips Semi (NXP)

2008

Motorola (Freescale)

+

Leadership and reduced process development costs are enabled through the International Semiconductor Development Alliance (ISDA)

ST & Philips Semi (NXP)

1992 2001 2003

28

3SUN: Photovoltaic Joint Venture

Equity Injection(Almost All In-kind =€70M)*

Equity Injection(Cash =€70M)

Equity Injection(Cash =€70M)

* The ST contribution into the PV joint venture consists primarily of the contribution in-kind of the M6 factory. Through an option agreement with Numonyx, Numonyx will transfer M6 to ST, against the off-set of a portion of the outstanding 30-year note due to ST, immediately before the closing of the PV JV. Upon closing, ST will then contribute M6 to the PV JV.

Photovoltaic Joint Venture

State Grants + Project Financing (non-resource)

1/3 ownership of JV 1/3 ownership of JV 1/3 ownership of JV

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ST Commitment to Sustainable Excellence

§ For us, understanding our stakeholders’ expectations is a precise business strategy, reflecting our many years of experience and our conviction that socially responsible companies are intrinsically more competitive and generate higher returns for shareholders.

§ We encourage ST employees to exercise a strong sense of individual responsibility to the environment and to the local communities in which we operate.

§ Our approach to Corporate Responsibility extends well beyond our Company, as we actively seek to involve our suppliers in our approach, significantly expanding our impact.

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