STMicroelectronics sees its forte in sustainability to maintain lead in supply chain

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When the race towards carbon neutrality is seen as an adversity by some, others see it as an advantage. For global automotive semiconductor leader STMicroelectronics (ST), which started to take sustainability high on the agenda more than 20 years ago, ESG gives it an upper hand to maintain the lead and stay in the game.

www.digitimes.com/, Nov. 03, 2023 – 

Francesco Muggeri, STMicroelectronics' vice president of Marketing and Applications, Power Discrete & Analog, APAC., pointed at the watch on his wrist in the press conference of ST Tech Day in Taipei on November 2 and said, "When the company claimed its watch to be 100% carbon neutral and required all its suppliers to become carbon neutral, a chain reaction has been ignited."

"ST is ready to become carbon neutral by 2027. Among all semiconductor makers, how many will be carbon neutral before 2027? No one. And the next semiconductor manufacturer claiming to achieve that will have to wait until 2030," said Muggeri. "We have started this journey more than 20 years ago, thanks to our visionary CEO. ST has a lot of value to deliver to our clients."

He added that at Apple's Scary Fast MacBook Pro launch event recently, the power consumption efficiency of the M3 chip of Apple was also a focal point. In other words, sustainability has become one of the critical determinants of customers to select suppliers for their supply chain. It is a kickoff of a big change, that ESG practices will impact the survival of manufacturers, and all companies must strive to go green.

Carmakers seek to control semiconductor supplies

A trend among smartphone companies to design their proprietary processors raised questions about whether automotive companies will also follow suit to design their own chips to differentiate themselves from competitors, thus bypassing automotive chip companies and going directly to wafer foundry makers to produce their chips. Although Muggeri agreed that there is a trend of "verticalization" in the automotive industry, he said it will be an opportunity rather than a challenge for ST.

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