STMicroelectronics and Amazon Web Services (AWS) have announced a significant expansion of their strategic partnership. The collaboration will span product supply, technology development, and includes a new equity component.

A core element is a new multi-year, multi-billion dollar agreement for ST to supply AWS with a broad portfolio of semiconductors. This includes mixed-signal processors, MCUs, analog, and power ICs, addressing the high-bandwidth and power efficiency needs of hyperscale data centers.

On the technology front, the companies will work together to optimize cloud-based EDA workloads. By leveraging AWS's cloud computing power, ST aims to accelerate its chip design processes and reduce time-to-market.

To align long-term interests, ST will issue AWS warrants for up to 24.8 million shares of its common stock, with an initial exercise price of $28.38 per share.

ICgoodFind: This multifaceted partnership between ST and AWS underscores the growing convergence of semiconductor and cloud technologies, accelerating innovation and deployment for next-generation data centers.