STMicroelectronics (STM) investor relations material

Sensor Market Outlook and Growth Ambitions

• Achieved double-digit revenue growth in sensors, reaching $2.2B in 2025, up 10% from 2024, with a mid-teens CAGR targeted through 2028, outpacing the overall sensor market growth of 4.7% CAGR.

• Sensor market projected to grow from $49B in 2025 to $57B in 2028, with both MEMS and imaging segments expanding; MEMS anticipated to grow faster and rebalance the revenue split.

• High-growth applications include automotive cabin monitoring and driver occupancy, projected at 40% CAGR, and expansion into robotics, AR/VR, and security.

• Humanoid robotics seen as a long-term growth driver, with a $600 bill of material opportunity per unit and sensors comprising 30-40% of this value.

• Over 30 billion sensors sold to date, supporting applications in energy transition, automotive safety, health, IoT, and industrial automation.

Technology and Product Leadership

• Holds leading positions in MEMS (motion, pressure, actuators) and imaging (Time-of-Flight, global shutter, metasurface optics), with proprietary process technologies and in-house manufacturing across Europe, Asia, and Africa.

• Intelligent sensors integrate local processing, embedded AI, machine learning, and algorithms for edge AI, reducing latency and energy use.

• Advanced MEMS and imaging solutions embed ISPU and CNN accelerators for efficient, high-performance data processing.

• Full development ecosystem, including STM32Cube.AI, supports customer design cycles and end-to-end development.

• Ongoing node migration to 90nm for logic, all in-house, to increase computational capabilities without shrinking analog portions.

Strategic Initiatives and Acquisitions

• Recent acquisition of a complementary MEMS business strengthens technology portfolio and market exposure, especially in automotive and industrial sectors.

• Pro forma 2025 MEMS revenue mix shifts to 41% automotive, 30% personal electronics, 18% industrial, and 15% computing/peripherals.

• Now ranked #2 in MEMS globally, with enhanced exposure to automotive and industrial markets.

• MEMS acquisition rebalances exposure: automotive now 37% and industrial 18% of MEMS revenues (pro forma 2025).