STMicroelectronics (STM) BNP Paribas Exane CEO Conference summary

Guidance and growth outlook

• Upgraded annual revenue guidance for data center business from above $500 million to about $1 billion, driven by surging demand and improved manufacturing confidence.

• Expectation to double data center revenue next year, with visibility extending to 2028 and a target of $18–20 billion total revenue by 2028.

• Three main data center opportunities: thermal flow infrastructure, power flows (with future expansion planned), and network flow (optical data transfer).

• Silicon photonics and optical cable investments are now yielding significant growth, with non-linear acceleration expected as GPU interconnects scale.

Technology and competitive positioning

• First 300 mm wafer native silicon photonics player, providing advantages in capacity, yield, and quality.

• Unique integration capabilities across microcontrollers, electronic ICs, and photonics ICs enable compact, advanced packaging for near-package optics.

• Market share in silicon photonics expected to grow from 5% to 30%, supported by major hyperscaler engagements and scalable capacity.

• No wafer fab capacity limitations anticipated through 2028; focus on expanding packaging and 3D integration capabilities.

Space and satellite business

• Long-term investment in LEO satellite technology since 2014, now holding 90% market share and expecting over $3 billion cumulative revenue in three years.

• Product coverage spans user terminals, satellites, and gateways, leveraging BiCMOS and FD-SOI technologies for RF performance and radiation resistance.

• Market share expected to normalize to 30%+ as competition increases, with continued innovation and pricing power.

• Future growth layers include direct-to-cell telecom and space-based data centers, with silicon photonics critical for space applications due to weight constraints.