Business Context and Reporting Period
This Form 6-K filing by STMicroelectronics N.V. is dated May 14, 2014. The report discloses a strategic agreement between STMicroelectronics and Samsung Electronics Co., Ltd. regarding 28nm Fully Depleted Silicon-on-Insulator (FD-SOI) technology. The filing includes a press release detailing a foundry and license agreement designed to ensure multi-source availability for this specific semiconductor process.
Key Financial Metrics
The filing text does not provide specific financial metrics for the current reporting period, such as revenue, profit, cash flow, margins, debt, or liquidity. The document is a disclosure of a strategic partnership rather than a financial results report. The only historical financial figure mentioned is STMicroelectronics' net revenue of $8.08 billion for the full year 2013.
Material Changes
The primary material change disclosed is the signing of a comprehensive agreement with Samsung Electronics. This agreement expands the ecosystem for 28nm FD-SOI technology by:
- Granting Samsung a license to manufacture ST's 28nm FD-SOI process.
- Providing customers with a multi-source manufacturing option alongside ST's existing facility in Crolles, France.
- Ensuring high-volume production capabilities through Samsung's 300mm facilities.
Guidance, Outlook, and Management Commentary
Management commentary indicates strong business momentum for the 28nm FD-SOI technology within the Embedded Processing Solutions segment. Jean-Marc Chery, Chief Operating Officer, stated that the agreement strengthens cooperation and augments fab capacity for the industry. The outlook includes:
- Qualification of the Samsung 28nm FD-SOI process for volume production in early 2015.
- Expected expansion of the ecosystem to include leading EDA and IP suppliers.
- Positioning the technology as an ideal solution for customers seeking performance and power efficiency at the 28nm node without migrating to 20nm.
The filing does not contain specific financial guidance, risk factors, or contingencies beyond the standard operational context of the partnership.
Key Facts for Investor Verification
- Verify the timeline for Samsung's qualification of the 28nm FD-SOI process, targeted for early 2015.
- Assess the impact of multi-source availability on STMicroelectronics' Embedded Processing Solutions segment revenue.
- Monitor the expansion of the IP catalog and EDA supplier support for the 28nm FD-SOI ecosystem.
- Review subsequent quarterly reports to determine if this partnership influences gross margins or capacity utilization rates.