STMicroelectronics NV at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Simon Coles - Barclays Services Corp - Analyst : Maybe we'll start off with sort of setting the scene a little bit. So 2025 was an interesting year. The industry was hoping for some recovery in the analog space, and it never really materialized as hope. So maybe you could give us a sort of a review of how STM for the year. And then you could give us an update on sort of how you're feeling about the auto and industrial markets at this point?

Question: Simon Coles - Barclays Services Corp - Analyst : Okay. Great. You touched on some of the inventory levels there. Is it fair to say that you're cautiously optimistic that the destocking risk that -- or the destocking activity we've seen in '25 is pretty much done. And by the time you've got through Q4, you don't really expect to see anything else on that front. And then you mentioned book-to-bill is above 1. Are bookings sort of trending maybe a little bit better since sort of earlier in the year. And do you think you have sort of better visibility into 2026 than you did have going into 2025 at the same stage last year?

Question: Simon Coles - Barclays Services Corp - Analyst : Okay. Great. Maybe we touched on gross margins before talking about some of the revenue opportunities. I mean they're not where you'd like them to be. There are a number of moving parts that you've been very helpful sort of laying out in the last few quarters. Could you maybe help us how to frame how to think about those into 2026. I mean you're reshaping the manufacturing footprint so there's some costs shifting around there. Underutilization should come down as revenues are improving, FX, like lots of things going on. So could you help us sort of frame how to think about those?

Question: Simon Coles - Barclays Services Corp - Analyst : That's great. That's very clear. Maybe just quickly on OpEx. It seems like after the Q3 commentary is set to go up next year. You have your cost-cutting plan. Anything we can do to sort of accelerate that to sort of try and manage this increase? Or how to think about that into '26?

Question: Simon Coles - Barclays Services Corp - Analyst : Got it. Okay. Maybe moving on to some of the revenue opportunities that you have ahead. There's a lot of excitement around interconnect in DCs. And I think about a year ago, you announced a sort of silicon photonics foundry business. How is the progress on this opportunity? How meaningful do you think this can be for STM? Is it a significant revenue driver in '26 already?

Question: Simon Coles - Barclays Services Corp - Analyst : Okay. Great. Maybe you sort of linked to this then is the AI power opportunity. Some of your peers have obviously been announcing some big numbers recently, but you have all the same products as well, silicon carbide, gallium nitride. You talked about some of these opportunities at your CMD last year. I mean, are you expecting to generate revenue in this area soon. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 6:25PM, STMPA.PA - STMicroelectronics NV at Barclays Global Technology Conference

Question: Simon Coles - Barclays Services Corp - Analyst : Okay. Great. So $0.5 billion potentially from AI in the next couple -- next few years. The satellite business, I feel goes under the radar a little bit and is performing very strongly for you. I mean how do we think about that business growing from here? Is there much competition in this space? How does STM differentiate? Can you give us a bit more color on the satellite opportunity?

Question: Simon Coles - Barclays Services Corp - Analyst : Great. Okay. Maybe we touched on silicon carbide that was seen as a huge growth opportunity. The last year or so has been quite difficult given what's happening in China. But it feels like the pricing pressure in places like China may be sort of bottoming out. How are you feeling about the silicon carbide outlook from here? You suggested growth next year already, I believe. So what are the drivers of that as well? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 6:25PM, STMPA.PA - STMicroelectronics NV at Barclays Global Technology Conference

Question: Simon Coles - Barclays Services Corp - Analyst : Got it. Very clear. Humanoid robots starting to get some more attention. STM has an extensive MCU portfolio. You also do lots in sensors as well. How are you feeling about this opportunity? Are there any numbers you could share about sort of content? Is this something that's exciting for STM in the next couple of years?

Question: Simon Coles - Barclays Services Corp - Analyst : Okay. Great. You've got an acquisition in progress, NXP's MEMS business. Could you give us a bit more color on sort of how you think that's going to fit into the group? And then it's going to cost you not far off $1 billion. Are you happy with sort of the cash position post-acquisition?

Question: Simon Coles - Barclays Services Corp - Analyst : Okay. Brilliant. And then signal times up. So Lorenzo, thank you so much for the time. It's very interesting, very helpful. I hope it is for everyone else. Thank you.