➀ The formation of the 'China for China' supply chain is accelerating, with the Chinese government aiming for domestic car manufacturers to source 25% of their ICs locally by 2025. ➁ ST has partnered with HHGrace to develop 40nm industrial/automotive-grade MCUs, with mass production expected later this year. ➂ Renesas, NXP, and Infineon are in discussions with Chinese foundries for local sourcing.

➀ ST has revised its long-term financial targets, pushing the $20 billion revenue target from 2027 to 2030 due to weaknesses in the automotive and industrial markets. ➁ For 2027-28, the revenue target is now around $18 billion with an operating margin of 22-24%. ➂ CEO Jean-Marc Chery expects capex to decline over the next three years but emphasizes ST's position as the largest SiC chip seller and its AI revenue potential.

➀ The CEOs of Europe's top three chip companies discussed the challenges of doing business in China under US restrictions at the Electronica Forum. Jean-Marc Cheri, CEO of ST, highlighted the importance of China as a 30% revenue contributor and the need for stability in the supply chain. Kurt Sievers, CEO of NXP, emphasized that no country's chip industry could be independent or dominant, and warned about the potential increase in costs due to supply chain fragmentation. Jochen Hanebeck, CEO of Infineon, cautioned about the fragmentation on the supply side and the potential impact of tariffs.

➀ ST is launching its fourth generation STPOWER SiC MOSFET technology optimized for traction inverters; ➁ The technology is available in 750V and 1200V classes for mid-size and compact EVs; ➂ The 750V class qualification is complete, with 1200V class expected in Q1 2025.

1. ST reported Q2 net revenues of $3.23 billion with a gross margin of 40.1% and an operating margin of 11.6%. 2. The company's H1 net revenues were $6.70 billion, with a decrease of 21.9% year-over-year. 3. ST expects Q3 revenues of $3.25 billion and has revised its FY24 revenue forecast to a range of $13.2 billion to $13.7 billion.