Two More World Leaderships Confirmed for STMicroelectronics
11/11/98
Business Wire
(Copyright (c) 1998, Business Wire)
MUNICH, Germany--(BUSINESS WIRE)--Nov. 11, 1998--Recent reports issued by independent semiconductor market analysts have confirmed that STMicroelectronics (NYSE: STM) is the world's leading supplier of microcontroller chips for use in smartcards and integrated circuits performing the MPEG -2 decoding function that is at the heart of the digital video revolution.
Smartcard Microcontrollers: Almost 50% Market Share
For MCU-based smartcard chips, which are at the heart of key applications such as electronic purses, bank cards, pay-TV and GSM, the results recently released by INSTAT are particularly impressive. In 1997, ST shipped nearly 108 million MCU-based smartcard chips, more than the combined shipments of the only two other significant players in this booming market: Motorola, in second place, shipped 48 million units while third-placed Siemens shipped 47 million units, giving ST a market share of 49.7%. ST's other competitors in this field shared just 6.5% of the total world market, according to INSTAT. Figures from another leading analyst, Dataquest, confirm this market dominance: Dataquest estimates ST's market share at 44% and the combined sales of Siemens and Motorola at 45%, with Philips (5% market share) as the only other significant player in the market. 6 Dataquest also ranks ST as the number one supplier to the total smartcard market, which includes simple memory cards as well as microcontroller-based cards. According to Dataquest, ST captured 38% of the 1997 market, followed by Siemens (37%) and Motorola (13%). Again, Philips (7%) was in fourth place, with the remaining players sharing 5% of the world market, which was estimated to amount to over one billion units shipped.
Commenting on these results, Maurizio Felici, Group Vice President and General Manager of ST's smartcard business unit said that ST's success in this highly competitive field is due to the combination of leading-edge technology and an uncompromising commitment to security, which is a primary consideration in most smartcard applications.
"We were the first smartcard chip manufacturer to advocate the use of independent security evaluations and we have cooperated in numerous investigations that have exposed our total security chain - from the on-chip security mechanisms to our shipping logistics - to the most severe scrutiny applicable to commercial applications. As a result, we considerably outperform all our competitors on security certifications in terms of both the total number of certifications awarded and the security level offered," said Felici, who also observed "In 1999 we will start 0.25/0.35fm production in our 8-inch fab in Catania, Italy, which is today in volume production of Flash memories; it will be followed by the 8-inch fab in Rousset, France, currently under construction."
Setting the Pace in Set Top Box Chips
ST's leadership in the market for MPEG -2 decoders and Set Top Box (STB) chips, the chips used in decoding digital cable or satellite signal for TV and entertainment programs, long acknowledged by the market, was confirmed by figures released in another Dataquest report (1997 Consumer Electronics Semiconductor Market Share, August 10, 1998). According to Dataquest, ST captured more than 40% of the 1997 world market, valued at nearly US$200 million, with revenues twice as large as those of its closest competitor.
" MPEG -2 is a core technology for next- generation consumer electronics and information appliances such as set-top boxes and DVD players. Our continued leadership of this industry sector is the result of our expertise in MPEG , our complete range of products and support software for these applications, and our system-on-chip technology know-how, which enables us to deliver advanced, cost-effective solutions. Our leadership in this market places us far ahead of our competitors and in the best position to invest in new products for future generations of MPEG -2 products," said Philippe Lambinet, General Manager of ST's Digital Video Division.
According to Dataquest, the market for semiconductors in digital set-top boxes will grow by 28% per year over the next five years, creating a market valued at more than US$4 billion in 2002.
The Dataquest report also ranked ST as the second largest vendor of ICs for DVD video players in 1997 with a 14% market share. This market is forecast by Dataquest to grow by 75% a year over the next five years, creating a market valued at nearly US$1.4 billion in 2002. ST expects to take an increasingly large share of this market with products such as the recently announced STi5505 OMEGA-DVD, the world's first truly integrated DVD player back-end decoder chip.
About ST
STMicroelectronics is a global independent semiconductor company with strong European roots, whose shares are listed on the New-York Stock Exchange (NYSE: STM), on the Bourse de Paris and on the Milan Stock Exchange. It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. For the year 1997, the company had revenues of $4.02 billion and net earnings of $406.6 million. Further information on ST can be found at www.st.com.
CONTACT: Press Contact: STMicroelectronics Maria Grazia Prestini Corporate Press Relations Manager St. Genis (France): Phone: +33 4 5040 2532 Fax: +33 4 5040 2540 Agrate (Italy): Phone: +390 39 603 5901 Fax: +390 39 603 6094 mariagrazia.prestini@st.com or Morgen-Walke Associates, Inc. Michele Katz/Elric Martinez/Jonathan Rebell Press: Brian Maddox/Estelle Bieber Tel. 212-850-5692 or 212-850-5600 ebieber@morgenwalke.com
07:37 EST NOVEMBER 11, 1998
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