STMicroelectronics Remains Committed to Technology Alliances in Crolles




Untitled Document




Crolles, France, January 16, 2007 – STMicroelectronics
(NYSE: STM), one of the world’s leading semiconductor companies, has today
restated its strong commitment to technology alliances with partners. The Company
confirms the continuation of its technology development at Crolles, following
the announcement of the withdrawal, at the end of 2007, of NXP Semiconductors
from the Crolles2 Alliance among ST, Freescale, and NXP.

The Crolles2 Alliance partners will work together to complete the program on
45nm CMOS and effectively manage the transition throughout 2007.


STMicroelectronics strongly believes that the shared R&D business model,
exemplified by the Crolles2 Alliance, contributes to the fast acceleration of
semiconductor process technology development. ST is therefore pursuing an expansion
of its portfolio of alliances and is now in discussions with major semiconductor
companies to continue and reinforce technology cooperation in Crolles, as of
2008.


The Crolles2 Alliance was formed in 2000 and renewed in 2002 when Freescale
(then Motorola) joined the existing alliance of STMicroelectronics and NXP (then
Philips Semiconductors) to create and manufacture future-generation technologies
and System-on-Chip solutions more quickly and more cost-effectively. The Alliance
consolidates the work of three of the world's leading industry players in semiconductor
research and process and library development with the mission to develop advanced
processes. In 2002, the partners of the Crolles2 Alliance also signed a joint
development program with TSMC for process technology alignment. Additionally,
in 2004, the partners of the Alliance signed the Nanotec-300 research program
with CEA-LETI for development of the 45 and 32nm process technology nodes, thus
further extending the partnership.


The Crolles2 facility is one of the world’s most advanced centers for
R&D and the results achieved there have been instrumental in maintaining
Europe’s place as a stronghold in the semiconductor industry. The Crolles2
Alliance has delivered outstanding results for the 90nm and 65nm generations,
and has contributed significantly to the technology strength of the member companies
who have continually ranked in the global top 10 of semiconductor companies.


About STMicroelectronics

STMicroelectronics is a global leader in developing and delivering semiconductor
solutions across the spectrum of microelectronics applications. An unrivalled
combination of silicon and system expertise, manufacturing strength, Intellectual
Property (IP) portfolio and strategic partners positions the Company at the
forefront of System-on-Chip (SoC) technology and its products play a key role
in enabling today's convergence markets. The Company's shares are traded on
the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange.
In 2005, the Company's net revenues were $8.88 billion and net earnings were
$266 million. Further information on ST can be found at www.st.com.