STMicroelectronics Extends Strategic Relationship With Amazon Web Services With Multi-Yr Deal

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(RTTNews) - STMicroelectronics N.V.(STM) Monday announced a wider strategic collaboration with Amazon Web Services or AWS under a multi-year, multi-billion dollar commercial agreement, which includes several product categories.

The company said that the engagement covers a wide range of semiconductor solutions based on ST's proprietary technologies. It will provide specialized capabilities in high-bandwidth connectivity, including high-performance mixed-signal processing, advanced microcontrollers for intelligent infrastructure management, and analog and power ICs designed to deliver the energy efficiency required for hyperscale data center operations, STMicroelectronics added.

According to the company, the collaboration is expected to help customers reduce total cost of ownership and accelerate time to market. ST's technologies will support AWS in meeting rising demands for compute performance, efficiency, and data throughput driven by expanding AI and cloud workloads. As part of the agreement, ST will also work with AWS to optimize Electronic Design Automation or EDA workloads in the cloud.

In connection with the expanded relationship, STMicroelectronics has issued warrants to AWS for the purchase of up to 24.8 million ordinary shares. The warrants will vest in tranches over the term of the agreement, largely tied to AWS's payments for ST products and services, and may be exercised over a seven-year period at an initial exercise price of $28.38 per share, the company added.

On the NYSE, STM ended Friday's trading at $29.85, up $0.87 or 3.0 percent. In overnight trading, the stock is up $0.47 or 1.6 percent at $30.32.

On the NASDAQ, AMZN ended Friday's trading at $210.32, down $12.37 or 5.6 percent. In overnight trading, the stock is trading at $211.81, up $1.52 or 0.72 percent.