Jean-Marc Chery, STMicroelectronics President and CEO, gave a keynote speech at IAA Mobility 2025 on STs views on the automotive industrys deep transformation and our contribution, as a semiconductor integrated device manufacturer, to make it successful.
Geneva, Sept. 19, 2025 –
The automotive industry is undergoing its most profound, challenging, and exciting transformation in history. This is not only about the vehicle, but also the market landscape with growing market complexity, including trade tensions and tariff disputes and the transformation of the relationship between the automotive industry and semiconductor industry.
Two key drivers stand out among the main forces transforming the automotive industry. The shift toward e-mobility – battery electric vehicles and hybrids – and the shift to architecture of what we call the software defined vehicle. Battery and hybrid vehicles are expected to become the majority of light vehicles sold and produced by the end of the decade provided that they remain affordable, user-friendly, and safe enough to become the preferred choice for consumers. The software defined vehicle requires a new approach to vehicle hardware and software design and a transformation in how semiconductors support the automotive industry.
Although it is not new, the global market landscape is also shifting with China becoming, not the most important, but certainly a strategic market force influencing innovation, sales, and value chains. This raises some questions about Europe’s competitiveness in this new ecosystem and competitive landscape.
ST’s Role in the Transformation
Regarding STMicroelectronics’ role as a leading semiconductor technology provider and our integrated operating model addressing the challenges of this transformation, we identify three critical contributions:
1. Delivering technologies to carmakers and customers that generate tangible value.
2. Promoting collaboration across the entire mobility value chain by shifting from transactional relationships with Tier 1 and Tier 2 suppliers to end-to-end partnerships that drive innovation.
3. Enhancing supply chain resilience and independence, which will become increasingly vital in the face of tariffs and trade disruptions.
Innovation
Let’s start with innovation and three examples where we can provide value creation to the carmakers and customers.
First sensors. Modern vehicles generate huge data volumes of data through sensors. MEMS sensors are small components which detect movement, acceleration, vibrations, as well as temperature, humidity and environment. Much data from the external world is captured by the sensors. We can also integrate artificial intelligence capabilities directly into the sensor, enabling real-time responses within the vehicle. ST is one of the key providers of sensors to automotive and very recently, as part of our commitment to the automotive industry, we have proposed to acquire NXP’s MEMS business, pending approval from the regulatory authorities. The second important area of sensing in the car is driver and occupant monitoring which will be key for safety and for avoiding accidents by warning the driver if for example they are distracted by messages on their phone.
The second innovation where ST is providing support is power electronics. Electrification of the vehicle depends on the electric engine and the battery, with power electronics a key enabling technology. Through new materials like Silicon Carbide and Gallium Nitride (GaN) semiconductors can offer vehicles longer range, consuming less power and improving their carbon footprint. As an example, with a state-of-the-art battery and power electronics a charge of 1 to 2 km range per second will soon be possible. Once this performance is achieved, provided the right infrastructure is in place, the convenience of recharging will represent a true breakthrough. This is what the power electronics is enabling and ST invests heavily to offer, as a broad range supplier, Silicon Carbide MOSFETs, GAN, IGBT, low-voltage and high voltage MOSFETS and all the drivers to manage power solutions.
The third innovation involves embedded processing solutions for Software Defined Vehicles. ST is a key provider of microcontrollers and standard microprocessors, rather than high-performance computing devices or high-bandwidth memory, which are a key feature for the software defined vehicle architecture. We offer solutions for zonal architectures featuring high-performance microcontrollers, allowing carmakers to customize memory size according to their specific features. These microcontrollers support scalable, edge-embedded artificial intelligence and can be updated over the air.
With sensing solutions, power electronics, embedded processing solutions, among many others, ST provides the innovations required by the automotive industry to drive this major transformation.
Collaboration and ST’s IDM Strategy
Ten years ago the relationship between the carmakers and semiconductors meant that the semiconductor industry came very late in the development of the system. Carmakers gave the specifications of a system to a Tier 1, for example for combustion engine control. Then the Tier 1 gave the specifications of the electronics system that will control the combustion engine to the Tier 2 and then the Tier 2 gave the specifications of the component to the semiconductor manufacturer. This transactional model will not work anymore for some parts of the system. While some components will continue to be commodities, a significant portion must undergo end-to-end innovation to deliver optimal features at the right cost, with affordable pricing, efficient power consumption, and a compact footprint within the vehicle. Without this end-to-end cooperation with semiconductors up to the carmaker, the ecosystem will fail to compete against the leading technology providers, including from China. With our end-to-end approach and integrated device manufacturer model, based on our own technology and manufacturing, ST is a key partner for the automotive industry.
ST’s manufacturing footprint
ST has a supply chain well-suited to the complexities of today’s global environment. Our manufacturing network, rooted in Europe, is organized into specialized clusters: embedded processing solutions, RF, and mixed-signal in France; analog and MEMS sensors in northern Italy; power technologies in southern Italy; and high-volume manufacturing in Singapore.
A few years ago, we chose to expand into China not driven by cost considerations or in anticipation of current trade challenges, but because we recognized the need to embrace the innovation, mindset, and rapid execution demonstrated by world-leading competitors there. Our “China for China” strategy leverages our own technology to provide customers with a dual model—using the same platform for technology and products that are designed, manufactured, and supported entirely within China. In parallel, our Europe manufacturing serves the rest of the world. We believe this dual approach enables us to deliver the best innovation, ensure a secure supply chain, and achieve the fastest execution for our automotive customers...