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STMicro Eyes Major Chip Plant Expansion by 2026
4 Jun
Summary
- STMicro may expand its Crolles chipmaking site by year-end 2026.
- Demand for AI data center silicon photonics is accelerating.
- The company raised its data center revenue outlook to $1 billion this year.
STMicroelectronics anticipates a decision regarding the further expansion of its Crolles chipmaking site in France by the close of 2026. This strategic consideration is fueled by the accelerating demand for silicon photonics, a critical component for AI data centers. The company is focusing on this technology at its 300-millimeter wafer fabrication plant in Crolles.
The ongoing shift towards near-package optics, which positions optical engines closer to processors, necessitates this capacity assessment. STMicro's current infrastructure at the Crolles plant is equipped to support its silicon photonics business through early 2028. This expansion is expected to significantly broaden the addressable market for the company's offerings.
Furthermore, STMicroelectronics has raised its data center revenue outlook, projecting around $1 billion for the current year. Executives are confident about capturing substantial market share, aiming for 30% from a starting point of 5%, supported by strategic partnerships with major hyperscalers like Amazon Web Services.
