STMicro's 2027 AI revenue to be four-fifths optics, CFO says
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
Sept 9 : About 80 per cent of the more than $2 billion in AI data-centre revenue STMicroelectronics is targeting for 2027 will come from chips used in fibre-optic data links, its finance chief said on Wednesday, providing the first breakdown of a target the company raised in July.
The remaining 20 per cent will come from chips used for cooling systems and power conversion inside servers, Chief Financial Officer Lorenzo Grandi told Citi's Global TMT Conference in New York.
"Short term will be mainly driven by the connectivity portion," Grandi said.
He added that ST's presence in server power is currently limited and that the company does not expect meaningful revenue from the business before 2028.
The comments show that, for now, the AI business of one of Europe's largest chipmakers is concentrated in connectivity chips, with the larger opportunity in server power expected to emerge only after 2028.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app