STM - STMicro: Microcntoller Leadership Could Support Growth Recovery

2024-05-31 08:21:46 ET

Summary

• STMicroelectronics has shown remarkable growth in the SiC market, outpacing the overall market with a 40% average growth rate.
• The company has gained significant market share in the MCU market, becoming the market leader with a 17.3% share.
• STMicro's focus on industrial MCUs has also contributed to its competitiveness in the non-automotive MCU market, where it is the market leader with a 22.29% share.

In our previous analysis , we discussed STMicroelectronics N.V.'s ( STM ) leading position in the SiC market. Despite facing stiff competition, particularly from Infineon, which has made strides in performance with its expanded 2kV CoolSiC portfolio, we believe STMicro has shown remarkable growth over the past 4 years, outpacing the overall SiC market with an average growth rate of 40%.

In this analysis, we focused on its MCUs which are under its Microcontrollers and Digital ICs Group ('MDG') segment as it is its second largest segment (31% of total revenues) and is the second fastest growing segment with an average of 10.5% in the past 9 years as seen below. We analyzed the company's market positioning as its market share has risen over the years to become the market leader. We delved into factors why the company has been gaining market share by examining its competitiveness in the automotive and non-automotive MCU markets by product breadth and performance....

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