Innovation

Innovation is a crucial element that propels our growth and helps us achieve our business goals. Our focus is on creating technology-based products that provide solutions to real world challenges and contribute to a sustainable future. We believe technology plays a key role in solving environmental and social challenges. In 2023, we invested US$2.1 billion in research and development (R&D) to support innovation, representing 12.2% of our net revenues.

How we innovate

Building an internal framework

Innovation is a collaborative effort that should involve the entire organization. We have therefore developed an ecosystem to initiate, develop, and sustain innovation throughout the Company and beyond.

Our Innovation Office provides a framework for accelerating innovation processes and searching for disruptive technologies and applications. Its mission is to create internal and external innovation opportunities by connecting emerging markets and technology trends with our internal technology expertise.

Under the guidance of our Innovation Office, our Technology Council reviews the most advanced R&D activities and develops a three-to-five-year roadmap. The council is supported by world-leading academic and industrial experts in technologies relevant to our business. 3-3

In 2022, our Technology Council launched cross-functional teams known as ‘Affinity Teams’ to drive innovation within crucial areas of business and sustainability. These teams facilitate knowledge sharing between internal and external innovators, including networking activities with startups, academia, and R&D leaders. In 2023, we built on this structure, creating communities of experts to advance our competencies.

Internal technology expertise

Over 9,500 ST employees work in R&D and design. This includes more than 800 technical staff members who are recognized for their advanced expertise.

This community drives our most advanced innovations, enabling us to develop new technologies and helping to foster R&D partnerships with prestigious universities and partners worldwide. Our expertise is recognized externally through our involvement and contribution at key scientific conferences.

Our sites around the world help to nurture the entrepreneurial spirit of our employees through our fab labs and hubs that connect our technical employees within local innovation ecosystems.

In 2023, we were named a Top 100 Global Innovator™ by Clarivate™, recognizing our position among the world’s most innovative organizations.

Leading-edge technologies

The focus of our innovation and the evolution of our technology is centered on three long-term trends reshaping industry and society and supporting the transition to a more sustainable world. These trends are:

• smart mobility
• power and energy
• cloud-connected autonomous things

Thanks to our broad portfolio of patents and strong pipeline of innovation, we are one of the few semiconductor companies with expertise across a very broad range of chip manufacturing technologies. We currently have about 20,000 active and pending patents. See more details about our technologies at www.st.com.

Artificial intelligence

ST is a leading provider of software and hardware for edge artificial intelligence (edge AI) solutions for tiny devices, such as sensors and microcontrollers.

As technology advances and data becomes more abundant, artificial intelligence (AI) is poised to revolutionize many industries and change the way we live and work. Exploiting distributed systems located at the ‘edge’ allows significant advantages in end-to-end energy saving and data security. This is because information is directly processed on sensors and microcontrollers, therefore avoiding centralizing data transmission and processing in the cloud. By harnessing AI in a wide range of sectors and situations, it can contribute to new, more effective ways of managing environmental impacts and climate change.

In 2023, we made significant advances in AI solutions. We unveiled ST Edge AI Suite, which provides a comprehensive, integrated set of software and tools. We also announced the ST Edge AI Core as the fundamental technology used in our AI unified tool, see ST products and solutions.

Alessandro Cremonesi

Executive Vice President, Chief Innovation Officer,
General Manager, System Research and Applications

ST’s products are at the core of many connected, autonomous ‘edge’ devices addressing sensing, processing, connectivity, and actuation needs. Our products allow those devices to be AI enabled, coupling efficient ST hardware solutions with our unique, industry-leading edge AI software suite. This dramatically increases our customers’ productivity to develop more intelligent and sustainable edge-AI products.

Innovation ecosystem

ST’s innovation model is based on a balance between internal and external initiatives that guarantee continuous capability to identify, develop, attract, absorb, and create innovation. In 2023, we introduced an innovative network-based organization model based on the 3-3-3 approach:

• 3 scouting channels: ST driven, partner driven, venture capital driven
• 3 scouting targets: ecosystem expansion, IP acquisition, new market segments and R&D exploration
• 3 funnels to feed: ST product groups and R&D funnels, ST partner ecosystem, ST technical community

The scouting network is led by innovation specialists nominated for their expertise. The system streamlines our processes so we can work more efficiently towards potential collaborations. It also allows us to conduct business and technical analysis to better understand potential synergies.

Fab labs are a crucial part of our innovation ecosystem. These are dedicated areas with the technical resources to drive innovation. The labs help form local ecosystems by connecting ST employees and technical communities with external innovators. In line with the ongoing expansion of our global network of fab labs, we opened two new labs in 2023, in Le Mans (France) and Sophia Antipolis (France), bringing the total to 13.

External partnerships

We recognize the importance of partnerships in the innovation process and build strategic alliances, engage in bilateral research cooperation, and participate in standardization bodies. These bring together industry leaders from along the value chain to accelerate innovation, mainly in the automotive and industrial sectors, and diversify our scouting process in the smart mobility sector. In 2023, we were involved in 195 active R&D partnerships.

Throughout 2023, we continued to develop our program of external partnerships. To achieve this, we improved the way we work with accelerators to recruit startups. ST also launched a new initiative to attract and work with startups in France. In India, we launched a similar project with a rolling innovation application format, where a startup may apply to be part of ST India’s incubation program.

FOCUS

ST for Startups Sustainability Challenge France

For many years, our French sites have been developing support and assistance initiatives for startups. As part of this approach, in 2023 we launched ‘ST for Startups – Sustainability Challenge France’ to address pressing topics such as energy efficiency, water management, and positive social or environmental impact.

We received 75 entries from startups, SMEs, microenterprises, and student entrepreneurs in France. After careful consideration,10 were shortlisted by ST managers from across the country. The final of the event took place in Paris, where the finalists pitched their ideas to a jury including Frédérique Le Grevès, ST's Executive Vice President Europe & France Public Affairs and President of STMicroelectronics France. The evaluation was based on criteria such as adherence to the theme, level of innovation, and the quality of the business plan. Based on this, three winners were selected:

• Usense, a company that enables the detection, monitoring, and evolution of disease through urine analysis
• Fractal Energy, which provides a plug-and-play energy storage system to maximize the use of clean energy
• Cixi, which has designed an electric vehicle powered in part by a chainless crankset

The winners will benefit from technical and material support, such as access to equipment, products, and tailored advice from ST engineers via quarterly check-ins. Above all, the initiative demonstrates the combined benefits of collaboration and innovation in accelerating sustainability.

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In 2023, ST France, Italy and Malta joined the second Important Project of Common European Interest on microelectronics and communication technologies (IPCEI ME/CT). This strategic initiative involves 14 European Union member states and nearly 100 companies, SMEs, startups, and more than 600 research and technology partners.

The project aims to advance R&D and innovation, and the first industrial deployment of microelectronics and communication technologies across the entire European semiconductor value chain, including materials, design, chip manufacturing, and integration into final systems. The impact of IPCEI ME/CT goes beyond technical achievements. It also significantly increases collaboration within the microelectronics ecosystem and European scientific communities.

Alongside this, the first IPCEI program on microelectronics (IPCEI ME) is still running in Italy, with additional objectives for technologies and products to be achieved by the end of 2024 on energy efficient chips, power semiconductors, and smart sensors.

We continually nurture our open innovation ecosystem through a range of programs.

ST internal programs include:

• ST Partner Program raises the profile of authorized high-quality partners, showcasing their products and services through our website. We have more than 300 partners, including startups.
• ST Proof-of-Concept (PoC) Centers provide coworking spaces for small and medium-sized enterprises to speed up their proof-of-concept phase.
• ST for Startups Program provides a number of different ways that ST engages with eligible startups. These include providing advanced technologies and support, sharing knowledge, or direct business engagement. We also give visibility to startups through ST’s events and communications activities.
• ST-Up accelerator program supports hardware and technology startups through an 18-month, five-step process.

External programs include:

• Accelerators – we collaborate with accelerator initiatives such as Motor Valley and Startup Autobahn within the Plug and Play ecosystem.
• Incubators – we work with a global network of expert partners, such as Software République, Silicon Catalyst and e-novia.

Through our various initiatives and our partnership programs, ST was actively engaged with 80 startups in 2023. We also continued to improve our process for managing the startup lifecycle to further enhance our capability to drive successful partnerships.

Thanks to these programs, we are constantly exploring new sustainable solutions and enabling responsible applications for safer, greener, and smarter living (see Sustainable technology) via a model that supports both a push (inside-out) and pull (outside-in) approach to innovation.

Contributing to the SDGs

Our commitments and programs described above contribute to UN Sustainable Development Goals (SDGs):

SDG target 9.5 – Enhance scientific research, upgrade the technological capabilities of industrial sectors, and increase private research and development spending.