“Our new strategy is centered on leadership in sense and power and automotive products, and in embedded-processing solutions,” said Carlo Bozotti, President and CEO of ST.
The company’s new strategy is based on two product-segment organizations: Sense & Power and Automotive Products; and Embedded Processing Solutions> These have five separate product groups with an estimated market of $140 billion market in 2013.
“Our specific focus is on five product areas: MEMS and sensors, smart power, automotive products, microcontrollers, and application processors including digital consumer. These families are expected to experience solid growth rates driven by secular trends and fit extremely well with our market-leading positions and competitive advantages. The new ST will be more focused, leaner and better positioned to deliver value to our customers and our shareholders, targeting to rapidly achieve operating margins of 10 percent.”
The company has a very wide definition of the embedded market, with the Embedded Processing Solutions covering microcontrollers, imaging products, digital consumer products, application processors and digital ASICs, and ST says it will continue development of digital applications processors even though it will exit the ST-Ericsson joint venture for broadband modem chips by the end of next year .
“The opportunities in this industry are extremely exciting,” said Bozotti. “As semiconductors continue to be more pervasive, we see a world where ST products are everywhere microelectronics make a positive contribution to people’s lives. With our new strategic plan, we will grow faster, be more profitable and overall become an even stronger company.”