Geneva, Switzerland – – STMicroelectronics, a global semiconductor leader, has significantly expanded its strategic collaboration with Amazon Web Services (AWS) in a multi-year, multi-billion USD commercial engagement. The partnership aims to bolster high-performance compute infrastructure for cloud and artificial intelligence (AI) data centers, according to a company statement released today.
The expanded engagement positions STMicroelectronics as a key supplier of advanced semiconductor technologies and products that AWS will integrate into its compute infrastructure. This collaboration is expected to provide AWS customers with new high-performance compute instances, reduced operational costs and improved scalability for compute-intensive workloads.
The agreement encompasses a wide range of semiconductor solutions, leveraging ST’s proprietary technologies. Specifically, ST will supply specialized capabilities in high-bandwidth connectivity, including high-performance mixed-signal processing, advanced microcontrollers for intelligent infrastructure management, and analog and power ICs designed for the energy efficiency demanded by hyperscale data center operations.
This move comes as demand for specialized computing chips surges, driven by the rapid expansion of AI infrastructure. Recent estimates suggest that top US software firms are poised to invest $500 billion in AI development under the “Stargate” venture, further intensifying the need for high-performance components.
While Nvidia currently dominates the AI chip market, STMicroelectronics is strategically targeting the communications segment with the development of a photonics chip. This technology utilizes light to transmit data, offering the potential for significantly increased speed and reduced power consumption compared to traditional, electricity-based chips – a critical advantage for AI data centers.
Vincent Fraisse, General Manager of STMicroelectronics’ Radio and Communications Chip Division, stated that the collaboration with AWS will facilitate the integration of this new photonics chip into AWS infrastructure once it enters production later this year. STMicroelectronics is also partnering with a leading, currently unnamed, optical solutions provider to incorporate the chip into the next generation of pluggable optical transceivers.
The market for optical transceivers, essential for data transmission in advanced AI data centers, is experiencing substantial growth. According to research from LightCounting, the market was valued at $7 billion in and is projected to reach $24 billion by . Major players in this space include Coherent (COHR), Cisco (CSCO), Innolight, and Accelink.
The collaboration extends beyond simply supplying chips. STMicroelectronics and AWS are co-developing a data center photonic chip capable of delivering 800Gbps and 1.6Tbps optical interconnect speeds for AI and high-performance computing (HPC) workloads. This development signifies a shift towards light-based computing infrastructure, a concept that has long been considered a promising, though elusive, technology.
The partnership also builds on existing collaborations. The STM32N6 Discovery Kit, developed by Avnet, STMicroelectronics, and AWS, is already part of the AWS Qualified Device Program, streamlining the development and management of AI-powered devices. This qualification ensures seamless integration with AWS’s cloud infrastructure, accelerating the process for developers.
The move by STMicroelectronics and AWS represents a significant investment in photonic computing, a technology that could address the growing limitations of traditional electronic chips in handling the demands of increasingly complex AI workloads. The focus on reducing power consumption is particularly noteworthy, as energy efficiency is a major concern for hyperscale data center operators.
The financial implications of this expanded collaboration are substantial. The multi-billion USD commercial engagement underscores the confidence both companies have in the future of AI and the critical role that advanced semiconductor technology will play in its development. While the precise financial details of the agreement remain undisclosed, the scale of the investment suggests a long-term commitment from both STMicroelectronics and AWS.
This partnership is not merely a supplier-customer relationship; it’s a strategic alignment aimed at shaping the future of cloud computing and AI infrastructure. By combining STMicroelectronics’ expertise in semiconductor design and manufacturing with AWS’s leading cloud platform and extensive customer base, the two companies are poised to capitalize on the rapidly growing demand for high-performance computing solutions.
