HIGH LEVEL DIALOGUE ON ASEAN ITALYECONOMIC RELATIONS

Second Edition

Shangri-La Hotel, Singapore

Wednesday, April 11 and Thursday, April 12, 2018

STMicroelectronicsLong-term partnership with SingaporeApril, 2018

Semiconductor Industry Major Players 2

0,0 5,0 10,0 15,0 20,0

SAMSUNG

INTEL

TSMC

HYNIX

MICRON

BROADCOM LTD

Qualcomm (QCT)

TEXAS INSTRUMENTS

STM

NXP

Revenues - Q4 2017 (us$ B)

ST ranks as one of the top ten global players in the Semiconductor Industry

Who We Are 33

Research & Development Main Sales & Marketing Front-End

Back-End

As of December 31, 2017

• A global semiconductor leader• 2017 revenues of $8.35B with year-

on-year growth of 19.7%• Listed: Borsa Italiana, Milan,

Euronext, Paris, and NYSE• Market Cap of $19,8B *

• Approximately 45,500 employees worldwide• Approximately 7,400 people working in R&D• 11 manufacturing sites• Over 80 sales & marketing offices

* As of March 29, 2018

*As of March 2018

ASEAN OperationsST Presence

• ~ 6,900 Employees *(excluding Singapore)

• 5 Sales Offices

• 2 Back-End Plants

• Support Functions

NEWZEALAND

AUSTRALIA

PHILIPPINES

MALAYSIA

INDONESIA

THAILAND

4

~4,600 Employees*

One of the 10 largest industrial employers in Singapore

Toa PayohPackaging & Test Center

AMK

TOAPAYOH

LOYANG

*As of March 2018

Singapore Operations

Loyang• Logistics Center

Ang Mo KioHQ, Wafer Fab, R&D

Since 1969, ST has invested over $3B in Singapore

In 2017, Capex at about $240M; acquired the Micron 8-inch

wafer-fabrication plant

5

19691st Assembly & Test Plant

(Toa Payoh)

19845” WaferFab

Asia Pacific Design Center

(Ang Mo Kio)

1995Logistics Center

(Loyang)

19996” Wafer Fab

(Ang Mo Kio)

2005Nanotube Center

(Science Park)

Some ST Singapore Milestones and Awards

2010Set up 8” line

2004Singapore Environmental Achievement Award

2017Acquired Fab 13 from Micron

1984

First four-inch wafer-fabrication plant built in Singapore

First microchip design center established in Singapore

1999

The Singapore government bestowed upon ST the Singapore Quality Award and the Technology Achievement Award

2009

The Company received the President’s Award for the Environment for its exemplary practices in environmental protection, water conservation, and its reduction in the generation of waste and pollution emissions

MIL

ESTO

NES

AWAR

DS

2000

The Company was honored with the Distinguished Partners in Progress Award.

1994

EDB conferred on ST its Business Headquarters (BHQ) status for the Company’s outstanding contributions to the semiconductor industry and for its substantial presence in Singapore

6

*As of March 2018

ST in Italy

• 10,000 direct employees (22% of total Group), plus 10,000 indirect employees

• 2,500 new hires since 2007

• 2,700 people employed in R&D (33% of total R&D)

• Ranked number 1 for new patents filings since 2000 (approx. 150 new patents every year and 30% of the total Group’s patents)

• More than US$ 2B Capex since 2006

7

AostaCornaredo Agrate Brianza

Marcianise

Napoli

Lecce

Palermo

Catania

ST is Critical for Italian Manufacturing

Italy

0.7

France

2.8

Germany

13.3

0.3% 1.2% 2.0%

US $ B

% on manufacturing Added Value

~ 4x

~ 20xTAM, 2015

8

Where You Find Us 9

Making everyday things smarter, connected and more aware of their surroundings

9

Making driving safer, greener and more connected

Enabling cities to make more of available resources

Enabling the evolution of industry towards smarter, safer and more efficient factories and workplaces

Making homes smarter, for better living, higher security, and less waste

Industrial robots

Factory automation

Industrial lighting

Smart Motion control

PowerManagement

Smart manufacturing

How does ST enable this?Power Discretes & Modules

Smart power

Connectivity & Communication

Microcontrollers& Secure solutions

Sensors & actuators

Analog &Signal conditioning

10

Product Family Focus 1111

The leading provider of products and solutions for Smart Driving and the Internet of Things

Portfolio delivering complementarity for target end markets, and synergies in R&D and manufacturing

Dedicated Automotive ICs

Analog, Industrial &Power Conversion ICs

General Purpose &Secure MCUs

EEPROM

MEMS &Specialized

Imaging Sensors

Discrete &PowerTransistors

Digital ASICs

• Started in 1969 with support to set up the first Assembly and Test Plant in Toa Payoh (Tax Pioneer status, Land subsidies, bank relationship set up with DBS, ...)

• Continued in 1984 with support to set up Asia’s first 5” Wafer Fab in Ang Mo Kio (Tax Pioneer status for 10 Years)• ST was the first multinational company to be awarded Business Headquarters Status in 1994 (Tax-exemption)• Further support to set up Ang Mo Kio 6” & 8” in 1999 and 2000 (Tax Pioneer status for 8” and reduced rate for 6”).• ST and EDB partnership includes:

• R&D and manufacturing grants• Training grants• Long-term tax agreement• Lease and utilities subsidies

AMKTOAPAYOH

LOYANG

*As of March 2018

Longstanding Partnership with EDB 12

Since its incorporation, ST Singapore has continuously expanded its scope, upgraded its technology and increased the scale of its operations, investing more than 3 billion USD and with the continuous support of Singapore Government through EDB: