STMicroelectronics Reports 2007 Second Quarter/First Half Revenues and Earnings

GENEVA — STMicroelectronics (NYSE: STM) reported financial results for the second quarter and six months ended June 30, 2007. On May 22, 2007, ST, in conjunction with Intel and Francisco Partners, announced a definitive agreement to create an independent semiconductor company, with ST contributing its Flash Memories Group (FMG). Since January 1, 2007 ST’s NOR and NAND Flash businesses have been reorganized into a stand-alone segment. Because of this reorganization, ST presents certain financial results for the Company as a whole as well as for the Company excluding FMG.

Application-Specific Product Highlights

• In mobile communications, ST gained two significant supply agreements for 3G digital baseband ASICs with two cellular phone manufacturers that are licensees of Ericsson Mobile Platforms’ leading-edge 3G platform.
• ST also gained further penetration in the cellular handset market for connectivity ICs: ST’s STLC2500 single-chip Bluetooth IC has now been designed into more than 100 phones, and ST’s STLC2590 FM tuner and Bluetooth-v2.1 combo chip has been designed into more than 10 mobile phones. ST’s wireless-LAN solutions are now in more than 25 mobile-phone designs.
• In the communications infrastructure market, ST gained several important design wins, including: three digital ASICs, two of which are manufactured in ST’s leading-edge 65nm CMOS process technology, for a world leader in networking, and two more ASICs for wireless macro basestations, including one device implemented in 65nm technology, for a world-leading European customer.
• In digital consumer, ST’s industry-leading highly integrated STi710x HDTV MPEG-4 decoders were used in Samsung and Humax set-top boxes (STBs) in the final trials for Korea Telecom’s new IPTV (Internet Protocol TV) service, which was officially launched in early July. LG-Nortel, another partner for the service, is also developing its STBs based on the STi710x family. Also, ST announced cost-effective support for the recently established Chinese AVS (Audio Video Standard), using its leading-edge TV STB decoders. And in audio, ST’s Sound Terminal™ family gained design wins from several Asian LCD TV OEMs, for the digital ‘Class D’ stage of loudspeakers.
• In computer peripherals, ST unveiled SABRe™, the industry’s first IC with a complete set of configurable and customizable analog functions that represent a market-unique solution for printer, fax and point-of-sale system applications. In hard-disk drives, ST revealed the industry’s first successful fabrication of its next-generation 65nm serial-interface MIPHY Intellectual Property (IP). The macro-cell is designed to be integrated with other functions into low-power System-on-Chip (SoC) ICs supporting both 3- and 6-Gbit/s Serial ATA hard-disk drives for mobile and desktop computing applications.
• In healthcare applications, ST and medical device company Debiotech agreed to industrialize a unique miniaturized insulin-delivery pump. The Nanopump™, which relies on microfluidic MEMS technology, is a breakthrough concept that allows a tiny pump to be mounted on a disposable skin patch. The inconspicuously small pump can provide continuous insulin infusion for the treatment of diabetes patients.
• In automotive, the longtime relationship between ST and Bosch was further strengthened with Bosch’s licensing of ST’s 0.18-micron BCD8 smart-power process, which is suited to highly demanding automotive applications, and ST’s HVCMOS8 high-voltage CMOS process, suitable for handling automotive sensor signals from ST. ST maintained its leading position for smart-power ABS driver modules with a design-in from a major American customer for coil-driver ICs for use by car makers worldwide. ST also acquired a major award for an airbag chipset with a Japanese customer and major design-ins with three tier-one customers for a strategic component in the injection module. And in power steering, ST also gained a design win for a new steering platform from a major European customer.
• In automotive car-body applications, a major European customer designed-in a new door actuator driver IC for a market-leading European car maker. ST also signed contracts with a major European customer for an ASIC for a Litronic lighting application and with a major European power-train customer for a new smart actuator for a Euro-5 standard electronic ignition application. Additionally, ST finalized a joint development with a major European customer for a companion chip with on-board high-speed CAN (Controller Area Network).
• In car radio and multimedia, ST introduced the industry’s first IC to offer GPS capabilities and navigation functions on a single chip. After reaching the milestone of 15 million TDA7540 single-chip AM/FM tuner ICs shipped in less than two years, ST gained a design win from a major Japanese car radio maker for a next-generation AM/FM tuner IC for 2009 model-year production.