Video summary
Cloud artificial intelligence represents one of the most significant growth opportunities for ST today, driven by an exploding demand for computing power, data traffic, bandwidth, and advanced power management systems. Hyperscalers are projected to invest over $700 billion in 2026 alone, a figure expected to rise to approximately $1.3 trillion by 2030, reflecting a compound annual growth rate of about 27%. This massive investment underscores the sheer scale of the market opportunity available for ST. The structural changes fueling this demand are primarily twofold: the industry is transitioning from copper to fiber optics, and data centers are evolving toward high-density racks capable of handling up to one megawatt of power. Consequently, traditional 54-volt architectures are reaching their limits, prompting ST to focus its strategy on two foundational pillars: power electronics and optical connectivity for cloud AI data centers.
To support this critical transition, ST is leveraging a suite of advanced technologies that directly address customer needs, including Smart GANs, smart power silicon, photonics, bicomos32 microcontrollers, and the Square Prom platform. The company is already demonstrating strong execution in 2026 with revenues reaching approximately $1 billion, validating its approach through strengthened collaborations with key customers. A major milestone has been achieved with the P100 product, which is now in high-volume production on the 300 mm line for leading hyperscalers. This achievement confirms that ST's technology is not merely promising but is fully industrialized and ready to scale, while aggressive capacity ramping plans aim to more than double P100 output by 2027 with further expansions scheduled for 2028.
Further validation of ST's position comes from its multi-year, multi-billion dollar commercial engagement with AWS, which solidifies the company's role as a trusted supplier for cloud and AI infrastructure. Looking ahead, the strategic roadmap includes the development of TSV technology, designed to significantly increase optical connectivity density, enhance module integration, and improve system-level thermal efficiency. These advancements are essential for supporting the next generation of near-package and co-package optics. Ultimately, Cloud AI serves as a pivotal strategic opportunity for ST, and the company has already proven its ability to deliver by combining cutting-edge technology with strong customer traction and robust industrial capabilities to play a meaningful role in this rapidly expanding market.
Read the full video transcript
Cloud AI is one of the most important
growth opportunities for ST today. AI is
creating a huge need for compute power,
more data traffic, more bandwidth and
more power management ICS. Hyperscalers
are expected to invest more than $700
billion in 26 and that will rise to
about $1.3 trillion in 2030 which is
about a 27% K year. This is the scale of
the growth opportunity for ST. What is
changing structurally is essentially two
things. [music] Copper is giving way to
fiber optics and data centers are moving
towards 500 kilowatt racks and even one
megawatt [music] plus density.
Traditional 54 volt architecture are
reaching their limits. So SD is focusing
on these two foundations of cloud AI
data centers power electronics and
optical connectivity.
We bring the technologies customer need
for that transition. Sik GAN smart power
silicon photonics bicymos32
microcontrollers as well as the square
prom.
We are already seeing strong execution
in 2026 [music] with a revenue of about
$1 billion.
First, [music] we are strengthening
collaboration with key customers.
Second, P 100 is now in high volume
production on the 300 mm line for
leading hyperscalers. That matters
because it shows the technology is not
only promising but already
industrialized and ready [music] to
scale. We are also ramping capacity
aggressively. Peak 100 output will more
than credible by 2027 with further
[music] expansion in 2028. The
collaboration with AWS is another
another major validation. It is a
multi-year multi-billion dollar
commercial engagement [music] and it
confirms ST's role as a trusted supplier
for cloud [music] and AI infrastructure.
Looking ahead, the next step is TSV.
This will further increase optical
connectivity density, module integration
and system level thermal efficiency
which is exactly what is needed for
further generation of new package optic,
near package [music] optic and co-
package optic. Cloud AI is a strategic
opportunity for ST and we are already
proving that we can deliver. We have the
technology, the customer [music]
traction and the industrial capability
to play a meaningful role in this
market.