STMicroelectronics, a Switzerland-based semiconductor company, said on June 2 it now expects about US$1 billion in 2026 revenue from data centers, up from its previous forecast of “nicely above US$500 million.”

The company cited strong demand for AI infrastructure and recent progress in ramping up capacity.

The chipmaker also said data center revenue could double in 2027 from the 2026 level if current market conditions continue and based on existing customer engagements.

That is higher than its earlier outlook of “well above US$1 billion.”

ST said its portfolio covers server and telecom alternating current-direct current (AC-DC) and direct current-direct current (DC-DC) power supplies, uninterruptible power supplies (UPS), battery management systems, and power distribution.

It has also entered high-volume production of its silicon-photonics PIC100 platform for 800G and 1.6T optical interconnects used in data centers and AI clusters.

Based on ST’s US$3.1 billion first-quarter 2026 revenue, a US$1 billion data center business would equal roughly 8% of the company’s annualized revenue.

The company said it is expanding capacity to more than quadruple production of the silicon-photonics platform by 2027, supported by customers’ long-term capacity reservation commitments.

🔗 Source: Bloomberg

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