STMicroelectronics has secured a multibillion-dollar strategic chip deal with Amazon, strengthening its role in the fast-expanding AI and cloud data center market driven by Amazon Web Services.
Amazon plans to invest $200 billion in 2026, largely focused on scaling cloud and AI infrastructure. The company pointed to exceptionally strong demand for AI workloads as the primary reason behind the surge in capital spending.
AWS continues to be a major growth engine, generating $35.58 billion in revenue in the most recent quarter of 2025. That figure contributed to Amazon’s total quarterly revenue of $213.39 billion, underlining the strategic importance of expanding compute capacity.
What The STMicroelectronics AWS Chip Deal Includes
- Multi-year, multi-billion-dollar strategic engagement
- ST acting as a core semiconductor supplier for AWS compute platforms
- Technologies focused on performance, energy efficiency and lower operating costs
- Supply of connectivity solutions, mixed-signal processing, microcontrollers and power management chips
Beyond raw performance, the partnership reflects a shift toward efficiency-driven cloud design. As AI inference workloads grow, controlling power usage and thermal density has become as important as compute speed. Integrating specialized silicon at the platform level allows AWS to optimize costs over the full lifecycle of its data centers.
Key Financial Highlights From STMicroelectronics
| Metric | Value |
| Q4 2025 revenue | $3.33 billion |
| Full-year 2025 revenue | $11.80 billion |
| 2025 gross margin | 33.9% |
| Planned 2026 capex | $2.0 to $2.2 billion |
As part of the agreement, AWS will receive warrants for up to 24.8 million STMicroelectronics shares, vesting over seven years. The deal positions STMicroelectronics to benefit directly from the accelerating global demand for AI-driven cloud infrastructure.
