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GENEVA, SUZHOU - STMicroelectronics (NYSE: STM), a leading semiconductor company currently trading near its 52-week low with a market capitalization of $19.4 billion, and Innoscience (HKEX:02577.HK), a top innovator in gallium nitride (GaN) manufacturing, have announced a joint development agreement (JDA) to enhance GaN power solutions and supply chain resilience. According to InvestingPro analysis, STM appears undervalued based on its Fair Value calculation, suggesting potential upside for investors interested in semiconductor industry leaders. This collaboration aims to advance GaN technology for a variety of applications including consumer electronics, datacenters, automotive, and industrial power systems.
The agreement, announced today, will enable Innoscience to use ST’s front-end manufacturing capacity in Europe, while ST will have access to Innoscience’s capacity in China. This strategic partnership is expected to provide both companies with the flexibility to meet global customer demands across a wide range of applications.
Marco Cassis, President of STMicroelectronics, emphasized the benefits for customers worldwide, stating that the agreement will accelerate ST’s GaN power technology development and allow for a flexible manufacturing model. Dr. Weiwei Luo, Chairman and Founder of Innoscience, highlighted the importance of GaN technology in creating more efficient electronic systems that save power, reduce costs, and lower CO2 emissions.
GaN power devices are known for their ability to enable new standards of system performance in power conversion and motion control due to their lower losses, resulting in enhanced efficiency, smaller size, and lighter weight. These benefits are driving the adoption of GaN technology in various industries, from consumer electronics to electric vehicle powertrains.
Both STMicroelectronics and Innoscience are integrated device manufacturers (IDMs) with a strong focus on innovation and sustainability. ST aims to achieve carbon neutrality and 100% renewable electricity sourcing by the end of 2027. Innoscience, with over 800 patents granted or pending, sets a global standard for GaN performance and market adoption.
The collaboration between ST and Innoscience is poised to further expand and accelerate the adoption of GaN technology, which is integral to the development of more sustainable and efficient power systems. This partnership is based on a press release statement issued today.
In other recent news, STMicroelectronics announced plans to introduce a new AI chip in collaboration with Amazon’s AWS, targeting the AI data center equipment market. This development aligns with the anticipated $500 billion investment in AI infrastructure by U.S. software companies. In financial updates, Jefferies upgraded STMicroelectronics’ stock rating from Hold to Buy, raising the price target from EUR 23.00 to EUR 34.00, citing expected growth in the second half of 2025. Conversely, BofA Securities downgraded the company’s stock from Buy to Neutral, lowering the price target to EUR 23.00 due to challenging market conditions and a lack of growth catalysts.
Additionally, the company is reportedly considering a workforce reduction of up to 3,000 jobs amid a slump in demand in the industrial and automotive sectors. This potential restructuring could affect operations in Italy and France, with discussions planned for voluntary early retirement programs. In governance news, Maurizio Tamagnini resigned from the Supervisory Board, with no successor announced yet. These developments come as STMicroelectronics navigates the complexities of the semiconductor supply chain and strives for innovation in a competitive market.
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