Swiss electronics company ST Microelectronics has expanded its collaboration with Amazon Web Services (AWS) to enable a compute infrastructure for cloud and AI data centres.

The multi-year, multi-billion-dollar commercial engagement serves several product categories and establishes STM as a supplier of semiconductor technologies and products that AWS can integrate into its compute infrastructure. This lets AWS provide its customers with high-performance compute instances, reduced operational costs, and the ability to scale compute-intensive workloads more effectively.

This engagement covers a broad range of semiconductor products leveraging STM’s portfolio of proprietary technologies. STM will supply specialised capabilities across high-bandwidth connectivity, including mixed-signal processing, microcontrollers for intelligent infrastructure management, as well as analogue and power ICs that deliver the energy efficiency required for hyperscale data centre operations.

The collaboration should help users reduce total cost of ownership and bring products to market faster. STM’s technologies can help AWS address the increasing demands for compute performance, efficiency and data throughput required to support growing AI and cloud workloads.

“Our advanced semiconductors will directly power AWS’s next-generation infrastructure, enabling their customers to push the boundaries of AI, high-performance computing, and digital connectivity,” said Jean-Marc Chery, STM CEO. “This collaboration positions us ideally for further scale-up across multiple market segments, from data centre infrastructure to AI connectivity, positioning STM at the centre of the AI revolution.”

STM will work with AWS (aws.amazon.com) to optimise electronic design automation (EDA) workloads in the cloud. AWS’s scalable compute power enables silicon design acceleration, parallelises design tasks and gives engineering teams the flexibility to handle dynamic compute demands and speed products to market.

STM has issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares of STM. The warrants will vest in tranches over the term of the agreement, with vesting tied to payments for STM products and services purchased by AWS and its affiliates. AWS may exercise the warrants in one or more transactions over a seven-year period from the issue date at an initial exercise price of $28.38.

STM (www.st.com) employs 48,000 people. The integrated device manufacturer works with more than 200,000 customers and thousands of partners to design and build products and ecosystems.