Carlo Bozotti, President and CEO of STMicroelectronics, a French-based joint venture, held a press conference in Tokyo on October 14, 2008 to introduce the semiconductor market prospects and the company's business strategy. Affected by the US financial crisis, the semiconductor market situation is getting more and more severe. However, after August 2008, the US dollar has appreciated against the euro, which is an opportunity for us (CarloBozotti). The company’s corporate acquisitions aimed at restructuring its business have also come to an end and will move to implementation in the future (CarloBozotti).
Since entering 2008, the company has been accelerating its business restructuring. In January 2008, the company acquired GenesisMicrochip, which is engaged in digital TV image processing technology. In March of the same year, it established a flash joint venture company, Numonyx B.V., with Intel and other companies in the United States to withdraw from the flash memory business. In April 2008, the company announced the establishment of ST-NXPWireless, an LSI joint venture for various wireless communication devices, such as mobile phones, with NXP Semiconductors of the Netherlands. At present, the company no longer intends to continue the acquisition, but to turn to the actual digestion of the acquired projects.
In response to the economic downturn, the company will also streamline its manufacturing base and investment in compression equipment. The streamlined manufacturing base has been started three years ago, and by the end of 2010, the previous 25 bases will be compressed to 15. It has been reduced to 18. In 2008, the proportion of equipment investment in sales will also be reduced from 20% to 10%. It is possible to fall below 10% after 2009. However, although the company is implementing the above measures, it is not intended to implement Fabless (CarloBozotti). Although it varies from product to product, about 80% of production will be produced by independent factories, and the remaining 20% ​​will be commissioned by external silicon foundries. Especially in the automotive LSI, users mostly require their own manufacturing.
In the future, the company will be engaged in the field of technology development, such as insulin pumps based on MEMS technology, fuel cells, and high-efficiency technologies for solar panels. In addition, in the CMOS technology, there are 32nm process and 28nm process low-power process technology developed in cooperation with IBM and other companies in the United States. In addition, in terms of 450mm wafers, we have abandoned flash memory and have not yet begun to manufacture general-purpose processors, so there is currently no need to transition to 450mm wafers.
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