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    Gianmarco Bonacina • Banca Akros

    Gianmarco Bonacina's questions to STMicroelectronics NV (STM) leadership

    Gianmarco Bonacina's questions to STMicroelectronics NV (STM) leadership • Q2 2025

    Question

    Gianmarco Bonacina of Banca Akros asked how a stronger euro impacts the company's long-term gross margin model and inquired about the effectiveness of the 'China for China' strategy against the trend of Chinese automakers prioritizing domestic chips.

    Answer

    President & CFO Lorenzo Grandi acknowledged the original margin model was based on a weaker euro but noted significant levers for improvement remain, like eliminating unused capacity charges. President & CEO Jean-Marc Chery expressed confidence that the 'China for China' strategy, which includes local design and manufacturing, will mitigate risks and allow ST to be perceived as a local player. Revenue from Chinese HQ customers is about 13-14% of the total.

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    Gianmarco Bonacina's questions to STMicroelectronics NV (STM) leadership • Q2 2025

    Question

    Gianmarco Bonacina of Banca Akros asked about the potential for gross margin expansion at higher revenue levels given the stronger euro, and inquired about ST's strategy to counter Chinese automakers prioritizing domestic chips.

    Answer

    President & CFO Lorenzo Grandi acknowledged the negative FX impact but noted significant margin leverage remains from eliminating unused capacity charges and improving product mix. President & CEO Jean-Marc Chery detailed the "China for China" strategy, including local design and manufacturing, to be perceived as a local player and mitigate risks. Sales to Chinese customers represent 13-14% of total revenue.

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