UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR

15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2026

Commission File Number: 1-13546

STMicroelectronics N.V.

(Name of Registrant)

WTC Schiphol Airport

Schiphol Boulevard 265

1118 BH Schiphol Airport

The Netherlands

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.


Form 20-F ☒						Form 40-F ☐

Enclosure: STMicroelectronics’ 2025 Dutch Statutory Annual Report, including the 2025 IFRS Statutory Accounts.

tmicroelectronics N.v. annual report 2022

Table of Contents


1. Message from our Managing Board on the financial year 2025			3
2. Corporate overview			4
2.1. History and development of STMicroelectronics			4
2.2. Organizational structure			5
2.3. Product information			5
2.3.1. Analog, Power & Discrete, MEMS and Sensors ("APMS") product group			6
2.3.1.1. Analog Products, MEMS and Sensors ("AM&S") reportable segment			6
2.3.1.2. Power and Discrete products ("P&D") reportable segment			7
2.3.2. Microcontrollers, Digital ICs and RF products ("MDRF") product group			8
2.3.2.1. Embedded Processing ("EMP") reportable segment			8
2.3.2.2. RF Optical Communications ("RFOC") reportable segment			9
3. Report of the Managing Board			10
3.1. Statement of the members of our Managing Board			11
3.2. Business overview and performance			12
3.2.1. Results highlights for the year 2025			12
3.2.2. Business overview			13
3.2.2.1. Strategy and objectives			14
3.2.2.2. Employees			14
3.2.2.3. Alliances with Customers and Industry Partnerships			15
3.2.2.4. Customers and Applications			15
3.2.2.5. Sales, Marketing and Distribution			16
3.2.2.6. Research and Development			17
3.2.2.7. Property, Plants and Equipment			18
3.2.2.8. Intellectual Property			18
3.2.2.9. Backlog			19
3.2.2.10. Competition			19
3.2.2.11. Public Funding			20
3.2.2.12. Suppliers			21
3.2.3. Key announcements			21
3.2.4. Financial outlook: Capital investment			24
3.2.5. Liquidity and financial position			25
3.2.6. Financial risk management			29
3.3. Risk management and Internal control			30
3.3.1. Risk management			31
3.3.1.1. Risk management approach			31
3.3.1.2. Risk Factors			34
3.3.1.3. Illustrative risk management measures			56
3.3.1.4. Risks having had a significant financial impact during 2025			59
3.3.2. Internal control systems			59
3.3.2.1. Internal control system regarding financial reporting risks			59
3.3.2.2. Internal control system regarding sustainability reporting risks			59
3.3.3. Internal Audit			59
3.3.4. Statement on risk management and internal control (systems)			60
3.4. Sustainability statement			61


3.4.1 Introduction			61
3.4.2 General sustainability disclosure (ESRS 2)			62
3.4.2.1 General basis for preparation (ESRS 2 BP 1 and BP 2)			62
3.4.2.2. Governance			65
3.4.2.3 Strategy (ESRS 2 SBM)			71
3.4.2.4. Impact, risk and opportunity management			77
3.4.3. Environment			85
3.4.3.1. Climate change (E1)			87
3.4.3.2. Pollution and Chemicals (E2)			112
3.4.3.3. Water (E3)			124
3.4.3.4. Waste and circular economy (E5)			133
3.4.3.5. EU Taxonomy			142
3.4.4. Social			152
3.4.4.1 Own workforce (S1)			153
3.4.4.2. Workers in the supply chain (S2)			181
3.4.4.3. Affected communities (S3)			189
3.4.5. Business conduct (Governance - G1)			194
3.4.5.1. The role of the administrative, management and supervisory bodies			197
3.4.5.2. Description of the processes to identify and assess material impacts, risks and opportunities			197
3.4.5.3. Business conduct			197
4. Report of the Supervisory Board			206
4.1. Composition of the Supervisory Board			207
4.2. Meetings and activities of the Supervisory Board			211
4.2.1. Activities of the Supervisory Board			211
4.2.2. Membership and Attendance			212
4.3. Audit Committee			213
4.4. Compensation Committee			213
4.5. Strategic Committee			214
4.6. Nominating and Corporate Governance Committee			214
4.7. Sustainability Committee			214
4.8. Secretariat and Controllers			214
4.9. Remuneration report			214
4.9.1. Supervisory Board remuneration			214
4.9.1.1. Supervisory Board Remuneration Policy			215
4.9.1.2. Compensation paid to current and former Supervisory Board members in financial year 2025			215
4.9.1.3 Supervisory Board remuneration comparison			216
4.9.2. Managing Board remuneration			217
4.9.2.1. Guiding principles of Managing Board Compensation			217
4.9.2.2. Managing Board remuneration policy			218
4.9.2.3. Managing Board remuneration structure			219
4.9.2.4. Compensation paid to the members of our Managing Board in financial year 2025			235
4.9.2.5. Evolution of paid remuneration to the Managing Board			236
4.9.2.6. Overview of the total compensation paid or owed to the members of our Managing Board, over financial years 2025, 2024, 2023			238
4.9.2.7 Compensation provisions in the event of termination or departure of the members of our Managing Board			239


4.9.3. Senior Management remuneration			242
4.9.3.1. Guiding principles of Senior Management compensation			242
4.9.3.2. Senior Management remuneration structure			242
4.9.3.3. Compensation paid to the Senior Management in 2025, 2024 and 2023			244
4.9.3.4. Compensation paid to the Executive Committee (excluding the members of the Managing Board)			247
4.9.3.5. Compensation paid to the Executive Vice Presidents			248
4.9.4. Remuneration comparison between the Managing Board, the Executive Committee (excluding the members of the Managing Board), the Executive Vice Presidents and indirect employees			251
4.9.5. Share ownership			252
4.9.6. Stock awards and options			252
5. Corporate Governance			252
5.1. Commitment to the principles of good corporate governance			252
5.2. General meeting of shareholders			254
5.3. Supervisory Board			256
5.4. Managing Board			258
5.5. Dutch Gender Balance Act			262
5.6. Indemnification of members of our Managing Board and Supervisory Board			263
5.7. Risk Management and Control Systems			264
5.8. Required information Article 10 Takeover Directive			264
5.9. Shares without voting rights and shares which do not give any or only a limited right to share in the profits or reserves			267
5.10. Code of Conduct			267
5.11. Deviations from the Dutch Corporate Governance Code			268
5.12. Major Shareholders			269
5.13. Shareholders’ Agreements			271
5.13.1. STH Shareholders’ Agreement			271
5.13.1.1. Standstill			271
5.13.1.2. Corporate Governance			272
5.13.1.3. Ownership of ST Shares			273
5.13.1.4. Change of Control Provision			273
5.13.1.5. Deadlock			273
5.13.1.6. Duration			274
6. Dividend Policy			274
7. Consolidated financial statements			275
7.1. Consolidated income statement			275
7.2. Consolidated statement of comprehensive income			276
7.3. Consolidated statement of financial position			277
7.4. Consolidated statement of changes in equity			278
7.5. Consolidated statement of cash flows			280
7.6. Notes to the consolidated financial statements			281
7.6.1. Corporate information			281
7.6.2. Basis of preparation			281
7.6.3. Statement of compliance			281
7.6.4. Basis of consolidation			281
7.6.5. Changes in accounting policies			282


7.6.6. Standards and amendments issued but not yet effective			282
7.6.7. Summary of material accounting policies			283
7.6.7.1. Business combinations and goodwill			283
7.6.7.2. Foreign currency translation			284
7.6.7.3. Revenue recognition			285
7.6.7.4. Other significant categories of income			286
7.6.7.5. Research and development			287
7.6.7.6. Current and deferred income tax			287
7.6.7.7. Earnings per share			288
7.6.7.8. Cash and cash equivalents			288
7.6.7.9. Inventories			289
7.6.7.10. Intangible assets with definite useful lives			289
7.6.7.11. Property, plant and equipment			290
7.6.7.12. Leases			291
7.6.7.13. Financial Assets			292
7.6.7.13.1. Offsetting financial instruments			292
7.6.7.13.2. Classification			292
7.6.7.13.3. Recognition and measurement			292
7.6.7.13.4. Impairment of financial assets			293
7.6.7.14. Trade accounts receivable			293
7.6.7.15. Derivative financial instruments and hedging activities			294
7.6.7.16. Employee benefits			295
7.6.7.17. Financial Debt			296
7.6.7.18. Equity			297
7.6.7.19. Trade payables			297
7.6.7.20. Provisions			297
7.6.7.21. Contingencies			297
7.6.7.22. Segment reporting			298
7.6.8. Critical accounting estimates and judgments			298
7.6.8.1. Right-of-use assets and lease liabilities			299
7.6.8.2. Income taxes			299
7.6.8.3. Impairment of non-financial assets			301
7.6.8.4. Pension obligations			302
7.6.8.5. Capitalized development costs			302
7.6.8.6. Inventory obsolescence reserves and normal manufacturing capacity thresholds			302
7.6.8.7. Control assessment and consolidation			303
7.6.9. Investments in subsidiaries			303
7.6.10. Property, plant and equipment			304
7.6.11. Leases			307
7.6.12. Intangible assets			308
7.6.13. Goodwill			309
7.6.14. Other financial assets and financial liabilities			311
7.6.14.1. Other financial assets			311
7.6.14.2. Other financial liabilities			314
7.6.14.3. Interest-bearing loans and borrowings			315
7.6.14.4. Hedging activities and derivatives			318
7.6.14.5. Fair values			322
7.6.15. Other non-current assets			329
7.6.16. Inventories			330
7.6.17. Trade accounts receivable			330


7.6.18. Other receivables and assets			332
7.6.19. Cash and cash equivalents			332
7.6.20. Equity			333
7.6.20.1. Outstanding shares			333
7.6.20.2. Preference shares			333
7.6.20.3. Treasury shares			333
7.6.20.4. Unvested share awards for the Employees			334
7.6.20.5. Other reserves			337
7.6.20.6. Dividends			337
7.6.20.7. Legal reserves			338
7.6.21. Provisions			339
7.6.22. Other non-current liabilities			340
7.6.23. Employee benefits			340
7.6.24. Trade accounts payable, other payables and accrued liabilities			346
7.6.25. Significant categories of income			346
7.6.26. Revenues			347
7.6.26.1. Nature of goods and services			347
7.6.26.2. Revenue recognition and disaggregation			347
7.6.27. Segment information			349
7.6.28. Expenses by nature			351
7.6.29. Other income			353
7.6.30. Other expenses			353
7.6.31. Finance income			354
7.6.32. Finance costs			354
7.6.33. Components of other comprehensive income			355
7.6.34. Income tax			355
7.6.35. Earnings per share			361
7.6.36. Related party transactions			361
7.6.37. Commitments, contingencies, claims and legal proceedings			364
7.6.38. Financial risk management objectives and policies			366
7.6.39. Subsequent events			369
8. Company’s financial statements			371
8.1. Company’s statement of financial position			371
8.2. Company’s income statement			371
8.3. Notes to Company’s financial statements			372
8.3.1. General			372
8.3.2. Basis of Presentation			372
8.3.3. Summary of material accounting policies			372
8.3.4. Leases			374
8.3.5. Intangible assets			375
8.3.6. Investments in subsidiaries and goodwill			375
8.3.7. Other financial assets and financial liabilities			377
8.3.7.1. Other financial assets			377
8.3.7.2. Other financial liabilities			379
8.3.8. Short-term deposits			379
8.3.9. Cash			380
8.3.10. Group companies interest-bearing short-term loans			380
8.3.11. Other Group companies receivables and payables			381
8.3.12. Equity			382
8.3.13. Other payables and accrued liabilities			384


8.3.14. Interest-bearing loans and borrowings			384
8.3.15. Guarantees and contingencies			387
8.3.16. General and administrative expenses			387
8.3.17. Finance income			388
8.3.18. Finance cost			388
8.3.19. Other income			388
8.3.20. Other expenses			388
8.3.21. Contractual obligations			389
8.3.22. Related party transactions			389
8.3.23 Auditors’ fees			389
8.3.24. Proposed cash dividend			390
9. Other information			391
9.1. Auditors’ report			391
9.2. Appropriation of results – provisions in Company’s Articles of Association			391
9.3. Branches			391
10. Important dates			409
11. APPENDICES			410
Appendix 11.1. Disclosure Requirements in the ESRS covered by our sustainability statement (IRO-2)			410
Appendix 11.2. Other EU legislation			418
Appendix 11.3. Incorporation by reference			423
Appendix 11.4. IRO tables (SBM-3)			425
Appendix 11.5. ST main manufacturing sites			442
Appendix 11.6. Certain Definitions			444
Appendix 11.7. ST policies and procedures referenced in the sustainability statement			449
Appendix 11.8. ST certifications			456
Appendix 11.9. Long-term sustainability targets			457
Appendix 11.10. ST Sustainability programs and activities addressing material IROs			460
SIGNATURES			462

STMicroelectronics N.V.'s Dutch annual report over 2025 consists of a message from the Managing Board on the financial year 2025 (Section 1), the management report (Section 2 through Section 5), the dividend policy (Section 6), the financial information (Section 7 through Section 9) and important dates (Section 10).

1.Message from our Managing Board on the financial year 2025

Dear Shareholder,

2025 was another challenging year for the end-markets we serve, characterized by continued inventory correction in Automotive and Industrial, in particular in the first part of the year. The second half was better with gradual improvement of the revenue trend and a return to year-on-year growth in the fourth quarter. During the year we began executing our previously announced program to reshape our global manufacturing footprint and resize our cost base while managing the Company through the challenging business environment. We continued to focus on our long-term innovation strategy, advancing the development of new proprietary technologies and designing new products into our customers’ next generations of systems and devices.

2025 review

In 2025, our net revenues decreased 11.1% to $11.8 billion, mainly driven by a strong decrease in Automotive and, to a lesser extent, in Industrial.

In more detail, on a year-over-year basis, Automotive revenues decreased 24%, Industrial was down 7%, while Personal Electronics increased 4% and Communications Equipment and Computer Peripherals were up 5%.

In April we detailed the Company-wide program to reshape our manufacturing footprint by focusing wafer fab investments towards 300mm silicon, 200mm silicon carbide, product mix capacity change and technology R&D, while resizing our global cost base. Increasing efficiency, automation, and use of AI will strengthen ST’s key technology R&D, design and high-volume assets for advanced manufacturing in Europe. This program aims to strengthen our capability to grow our revenues with an improved operating efficiency resulting in annual cost savings in the high triple-digit million-dollar range exiting 2027. Our strategic manufacturing initiatives remain aligned with our sustainability strategy and our commitment to sustainable manufacturing in terms of energy consumption, greenhouse gas emissions, air and water quality.

In July, we announced the acquisition of the MEMS business of NXP for up to US$950 million. The respective MEMS businesses of ST and NXP are strongly complementary in terms of technology and product portfolio, and the combined product offering will be well balanced across the Automotive, Industrial and Personal Electronics end markets. The closing of the deal was announced in February 2026.

Finally, we were pleased to announce after our May AGM the election of Werner Lieberherr and Simonetta Acri as new members of our Supervisory Board for three-year terms expiring at the end of the 2028 AGM, and, after our December EGM, the election of Armando Varricchio and Orio Bellezza as new members of our Supervisory Board for terms also expiring at the end of the 2028 AGM.

Optimized Strategy

Our strategy remains based on the same fundamentals. First, a value proposition for stakeholders focused on sustainable and profitable growth, providing differentiating enablers to customers and a strong commitment to sustainability.

Second, an optimized global integrated device manufacturer operating model, with highly skilled employees, a wide range of capabilities in proprietary, innovative technology and IP design, product and solution development, and advanced manufacturing (both in-house and with selected partners, including for China-for China) providing us with a strong competitive advantage and supply chain resilience for our customers.

These fundamentals continue to guide our market positioning and customer engagements, continuous and open innovation processes, product and IP design and technology R&D efforts and manufacturing investments.

ST-Specific Growth Drivers Beyond Cyclical Recovery

Beyond the evidence of a cycle recovery, ST will benefit from the following company specific growth drivers.

In Automotive, with our engaged customer programs in ADAS, SiC power devices and sensors, where our acquisition of NXP’s MEMS business will strengthen our leading position across the Automotive and Industrial segments.

In Industrial, with general-purpose MCUs.

In Personal Electronics, with our engaged customer programs in sensors and analog.

In Communications Equipment and Computer Peripherals, in data centers and AI servers, with cloud optical interconnect and power and analog. And in LEO satellite constellations, with the expansion of our customer base beyond the decade-long partnership with Starlink, via both new LEO constellation projects and new applications.

Lastly, ST is uniquely positioned to address the advanced robotic market, including the nascent humanoid robotics segment, through our broad product portfolio spanning MCUs, MEMS, optical sensors, GNSS and power management. 

Our objective remains to restore profitability levels compatible with our operating model, while strengthening our strategic assets and continuing to invest in innovation to capture the revenue growth opportunities created by the long-term trends transforming the end markets we address.

We stand by our conviction that, together with our customers, partners and employees, ST will continue to be a key enabler of the transformation of all industries towards a smarter, safer and more sustainable future.

2.Corporate overview

In this annual report, references to "we", "us", "our", "the Company", "our Company" and "ST" are to STMicroelectronics N.V., references to "ST Group Company" are to any of STMicroelectronics N.V.'s direct or indirect subsidiaries, and references to the "Group" or "ST Group" are to STMicroelectronics N.V. and its direct and indirect subsidiaries.

Certain industry-specific, accounting, legal, or otherwise commonly used defined terms included in this annual report are defined in the "Certain definitions" table included in Appendix 11.6., and in the "ST Policies" table included in Appendix 11.7. for ease of reference. Some defined terms included in the relevant appendices have also been defined throughout the body of this document, as required for clarity.

2.1. History and development of STMicroelectronics

STMicroelectronics N.V. was formed and incorporated in 1987 as a result of the combination of the semiconductor business of SGS Microelettronica (then owned by Società Finanziaria Telefonica (S.T.E.T.), an Italian corporation) and the non-military business of Thomson Semiconductors (then owned by the former Thomson-CSF, now Thales, a French corporation). We completed our initial public offering in December 1994 with simultaneous listings on the Bourse de Paris (now known as “Euronext Paris”) and the New York Stock Exchange. In 1998, we also listed our shares on the Borsa Italiana (the Italian stock exchange).

We operated as SGS-Thomson Microelectronics N.V. until May 1998, when we changed our name to STMicroelectronics N.V. We are organized under the laws of The Netherlands, with our corporate legal seat in Amsterdam, The Netherlands, and our head offices at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol, The Netherlands. Our telephone number there is +31-20-654-3210. Our headquarters and operational offices are managed through our wholly owned subsidiary, STMicroelectronics International N.V., and are located at 39 Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland. Our main telephone number there is +41-22-929-2929. Our agent for service of process in the United States related to our registration under the U.S. Securities Exchange Act of 1934, as amended, is Corporation Service Company (CSC), 80 State Street, Albany, New York, 12207. Our operations are also conducted through our various ST Group Companies, which are organized and operated according to the laws of their country of incorporation, and consolidated by STMicroelectronics N.V.

2.2. Organizational structure

We are organized in a matrix structure with geographic regions interacting with product lines, both supported by shared technology and manufacturing operations and by central functions, designed to enable us to be closer to our customers and to facilitate communication among the research and development (“R&D”), production, marketing and sales organizations.

While STMicroelectronics N.V. is our parent company, we conduct our global business through STMicroelectronics International N.V. and also conduct our operations through service activities from our subsidiaries. We provide certain administrative, human resources, legal, treasury, strategy, manufacturing, marketing, insurance and other overhead services to our consolidated subsidiaries pursuant to service agreements for which we recover the cost.

2.3. Product information

Semiconductor devices are electronic components that serve as the building blocks inside electronic systems and equipment. Semiconductor devices, generally known as “chips”, combine multiple transistors on a single piece of material to form a complete electronic circuit. With our portfolio of semiconductor products, we serve customers across the spectrum of electronics applications with innovative solutions.

We have a portfolio of power products and analog products, including sensors, signal channel devices and output power stages (discrete and/or integrated) as well as complete power management blocks. Our analog products, including both general purpose and application specific, can fulfill the needs of a wide range of designs and systems.

We also have digital products that are at the heart of electronics systems, including microcontrollers and microprocessors, ASICs and optical sensing solutions. Our full set of microcontrollers and microprocessors includes one of the industry’s broadest ranges of general-purpose microcontrollers serving all market segments, microprocessors addressing the industrial market, secure microcontrollers for mobile devices, wearables, banking, identification, industrial, automotive and Internet of Things (“IoT”) markets and a series of embedded processing solutions for our addressed end-markets (Automotive, Industrial, Personal Electronics and Communications Equipment, Computers and Peripherals, each as defined below).

We are one of the leading suppliers and innovators in the domain of semiconductor devices dedicated to automotive applications. Our offering includes a wide range of products, covering systems and functions from powertrain, chassis and safety, to audio, infotainment and telematics, as well as body and convenience. We offer automotive microcontrollers as well as solutions for ADAS and we provide automotive-grade MEMS as well as imaging solutions. Our portfolio also features a comprehensive range of analog and power solutions, including wide bandgap devices for hybrid and electric vehicles. The products are designed and manufactured specifically for automotive applications and complemented by a

large range of “automotive grade” standard products, both tested and guaranteed to perform under stringent automotive environmental conditions.

On top of our product design R&D spending, our principal investment and resource allocation decisions in the semiconductor business area are for expenditures on technology R&D as well as capital investments in front-end and back-end manufacturing facilities, which are planned at the corporate level; therefore, our product groups share common R&D for process technology and manufacturing capacity for some of their products.

As of December 31, 2025, our reportable segments within each product group were as follows:

•In our Analog, Power & Discrete, MEMS and Sensors ("APMS") product group:

oAnalog Products, MEMS and Sensors ("AM&S") reportable segment, comprised of ST analog products, MEMS sensors and actuators, and optical sensing solutions.

oPower and Discrete products ("P&D") reportable segment comprised of discrete and power transistor products.

•In our Microcontrollers, Digital ICs and RF products ("MDRF") product group:

oEmbedded Processing ("EMP") reportable segment, comprised of general-purpose and automotive microcontrollers, connected security products and custom processing products (automotive ADAS).

oRF Optical Communications ("RFOC") reportable segment, comprised of space, ranging & connectivity products, digital audio & signaling solutions and optical & RF COT.

Below is a description of our main categories of products as of December 31, 2025.

2.3.1. Analog, Power & Discrete, MEMS and Sensors ("APMS") product group

2.3.1.1. Analog Products, MEMS and Sensors ("AM&S") reportable segment

Analog Integrated Circuits

We develop a broad range of innovative smart power and analog ICs, comprising both application specific and general-purpose analog products. These serve a wide spectrum of markets and applications including automotive, smart grid, cloud computing, data servers, industrial automation, power conversion and personal electronics.

We are a leading supplier of analog semiconductors devices for automotive industry worldwide, enabling the electrification and digitalization of the car, and the pervasion of electronics in both traditional internal combustion engine vehicles as well as in electric cars, full or hybrid. Based on our proprietary BCD and VIPower technologies, we provide solutions for a range of car systems, such as battery management, traction engine, braking systems, airbag, door zone, e-fuse, and power management for ECUs.

In Industrial (as defined below) our product families include ASICs and ASSPs, covering motion control, power and energy management and factory automation. We continuously introduce new devices in our MasterGaN® and VIPerGaN families integrating a silicon driver and GaN power transistors in a single package. Our connectivity ICs range from wireline to wireless solutions. For wireline communication, we offer a complete family of transceivers compatible with different protocol standards used in the industry. Finally, we have a strong presence with our galvanic isolated gate drivers (also known as STGAP family) that are used both in industrial and automotive markets.

In Communications Equipment, Computers and Peripherals (as defined below) we serve our customers with power management solutions for data storage, as well as address the high power and high efficiency needs for servers and AI data centers.

In Personal Electronics (as defined below) we provide custom analog ICs, mainly power management ICs for battery powered devices. We deploy wireless charging solutions from low to high power across applications from smartphones to wearables, as well as display power management ICs and FingerTip touch screen controllers.

In General-Purpose Analog (as defined below) we have a wide product portfolio addressing all the market segments, spanning high-end analog front-end products, AC-DC and DC-DC converters, gate drivers for MOSFET, IGBT, SiC and GaN transistors, intelligent power switches, high & low side drivers, LED drivers, real-time clocks & timers, supervision and control ICs, as well as a comprehensive range of operational amplifiers (both low-voltage and high-voltage), comparators and current-sense amplifiers.

MEMS Sensors and Actuators

Our MEMS portfolio includes both sensors and actuators for a broad range of applications, including smartphones, personal devices, computers, automotive, industrial, healthcare and IoT.

MEMS sensors include motion MEMS (accelerometers, gyroscopes, magnetic sensors), environmental sensors (pressure, temperature and presence detection) and biosensors. We offer a unique sensor portfolio, from discrete to fully integrated solutions, high performance sensor fusion to improve the accuracy of multi-axis sensor systems in order to enable highly-demanding applications, such as navigation and location-based services, optical image stabilization and high-level quality products. Our latest range of smart sensors includes machine learning and edge AI processing capabilities built into the sensor enabling ultra-low power gesture recognition and tracking applications.

MEMS actuators include: (i) thermal and piezoelectric actuators for 2D and 3D printing in consumer, commercial and industrial market applications and (ii) piezoelectric actuators for applications such as smartphone camera autofocus, MEMS loudspeakers and image projection.

Optical Sensing Solutions

We have a broad portfolio of optical sensing solutions based on our proprietary differentiated technologies such as FlightSense, BrightSense and SafeSense by ST. These address various markets including 3D sensing for automotive applications such as in-cabin monitoring and occupant detection, as well as being used for industrial and consumer applications. Our optical sensing solutions are composed of both specialized components developed for dedicated customer systems, and full optical sense and illumination system solutions targeting multiple customers.

2.3.1.2. Power and Discrete products ("P&D") reportable segment

Discrete and Power Transistor

Our discrete and power transistors families include both power products and protection devices serving our end markets (Automotive, Industrial, Personal Electronics and Communications Equipment, and Computers and Peripherals, each as defined below).

Our leading-edge power technologies cater to both high-voltage and low-voltage applications. We combine a full range of packaging options with innovative die bonding technologies, utilizing both silicon and wide bandgap materials. Our portfolio includes silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules as well as a wide range of power bipolar transistors. We are expanding our offering based on wide bandgap materials with a full range of GaN-based power device solutions targeting a wide variety of applications.

Our portfolio of protection devices supports all industry requirements for electrical overstress and electrostatic surge protection, lightning surge protection and automotive protection. Our devices meet or

exceed international protection standards for electrical hazards on electronics boards found in the demanding markets we serve.

2.3.2. Microcontrollers, Digital ICs and RF products ("MDRF") product group

2.3.2.1. Embedded Processing ("EMP") reportable segment

General-purpose and automotive microcontrollers

Our general-purpose microcontroller product portfolio largely contains families of products based on 32-bit ARM®-based Cortex®-M0, -M0+, -M3, -M4, -M33, -M55, -M7 and -M85 with the ARM® TrustZone®. ST’s most powerful microcontroller to date, the STM32N6, with embedded ST’s proprietary neural processing unit, the neural-ART accelerator, was complemented in 2025 with another state-of-the-art high-performance microcontroller, STM32V8. The STM32V8, introduced in 2025, is the world’s first microcontroller built on the most advanced 18nm FD-SOI process technology, featuring embedded Phase Change Memory ("PCM") and a powerful Cortex®-M85 core. In 2025 we also introduced a new ultra-low-power product series, STM32U3, which leverage near-threshold technology, bringing the low power performance to an unprecedented level and expanding battery-powered applications’ battery life.

For each product family, a broad selection of features is available with respect to microcontroller performance, ultra-low-power, memory size, peripherals, and packaging. Numerous dedicated families include features such as our TouchGFX advanced 3D graphics, dedicated peripherals for industrial motor controls and digital power, security and safety features, and low-power wireless connectivity.

Our microprocessors product line targeting the industrial market features 64-bit processing and edge AI acceleration. Based on the Arm Cortex®-A35, these microprocessors run up to 1.5GHz, enhancing the main processing capability compared to first-generation devices. Additionally, they come with a dedicated Linux distribution.

The STM32 family based on the ARM® Cortex®-M and -A processors are designed to offer significant degrees of freedom to microcontroller and microprocessors users. The product range combines very high performance, real-time capabilities, digital signal processing, and low-power, low-voltage operation, while maintaining full integration and ease of development. We offer an unparalleled range of STM32 devices, accompanied by a vast choice of tools and software including support for industrial safety standard IEC 61508 SIL2/3, human machine interface.

In 2025, we continued to strengthen our STM32 microcontroller ecosystem with various software releases and updates of STM32Cube, using new modular foundation for visual studio code, as well as STM32 for entry-level graphics and TouchGFX. We also expanded our STM32 AI model zoo, which now has over 140 ready-made models for vision, audio, and sensing AI applications at the edge. It is the largest MCU-optimized model zoo library of its kind. This comprehensive portfolio makes our STM32 an ideal choice for enabling ever smarter objects for an increasingly broad range of applications.

Our automotive microcontroller portfolio supports ongoing transformation of the industry through electrification and digitalization of the car. We offer a complete portfolio of MCU products able to address all the needs, from local actuation and smart sensing to high-performance real-time processing with cross functional integration across multiple application domains.

Our Stellar family is a scalable ARM-based hardware architecture supporting real-time virtualization and automotive level safety ("ASIL-D"). It features a rich set of IOs and peripherals. The Stellar family is optimized for electrification, including x-in-1 vehicle motion control computer, zonal architectures and safety companion MCUs for safety critical subsystems, such as ADAS.

In 2025, we introduced Stellar MCUs with extensible memory, enhancing the flexibility of Stellar MCUs further, offering a unique value with more storage capacity for innovation while extending product lifetime with continuous over-the-air updates. This is made possible by leveraging our internally developed embedded non-volatile memory technology, phase-change memory, built on 28nm FD-SOI technology.

ST is the first to launch automotive qualified MCU devices embedded with this new emerging memory technology, since eFlash is reaching its limit in today’s process. This memory is the most mature and offers the smallest memory cell automotive-grade solution on the market, delivering more than twice the memory density and doubling the capacity in the same space. We also demonstrated our automotive ethernet support, delivering high-quality audio over the vehicle’s ethernet backbone, which significantly reduces vehicle weight by eliminating cabling.

Connected Security Products

We offer cutting-edge solutions for secure and connected applications, due to our STSECURE and ST25 portfolios. Security is particularly critical to near field communication ("NFC"), contactless and wired connectivity technologies that target payment, identification, access control and all secure transactions in mobile, industrial, consumer and automotive applications. Building upon our 30+ years experience in security, we offer a highly ambitious and coherent security portfolio, with the right level of protection from a basic identification of objects (tags and secure tags) to the most advanced security with our certified secure microcontrollers.

Our well-defined system-level architecture enables us to match our security strategy with current and future needs, like post-quantum cryptography, accelerating our pervasion in the security ecosystem. We offer security solutions for everybody, creating the opportunity to address customers for whom security is a must.

In 2025, thanks to our strategic collaboration with wireless technologies makers for our NFC-controller and secure element portfolio and the launch of our latest secure microcontroller for payment and ID applications, we have strengthened our position in mobile, banking and governmental markets. We launched the industry’s first secure ST25DA-C chip supporting new matter specification simplifying device commissioning through NFC tap-to-pair functionality. We also completed certification of our ST4SIM-300 embedded SIM ("eSIM") to GSMA SGP.32 IoT standard, supporting the deployment of billions of secure connected devices.

Our wide range of small density serial non-volatile memories has among the highest industry performance. The serial EEPROM family ranges from 1 Kbit to 32 Mbits and offers the most common serial interfaces to facilitate adoption: I²C, SPI and microwire. In 2025, we celebrated 20 years as the global leading supplier of EEPROMs and 40 billion units shipped worldwide. Since 2005, we have maintained our leadership position, fueled by innovation with, amongst others, the introduction this year of the EEPROM unique identifier family.

Custom Processing (Automotive ADAS)

We are a leading innovator in ADAS, dedicated to enhancing the passenger experience and helping to prevent or reduce the severity of traffic accidents. We manufacture cutting-edge ADAS SoCs that comply with the most stringent automotive quality and functional safety standards, enabling a safer and more reliable driving experience.

2.3.2.2. RF Optical Communications ("RFOC") reportable segment

Space

We leverage differentiated technologies and integrated device manufacturer ("IDM") model to deliver solutions across space-tech value chain. This comprises semiconductor solutions for geostationary satellites, low Earth orbit constellations, and ground infrastructure systems including user terminals. We have historically supported numerous European space initiatives, holding European Space Agency ("ESA") qualifications since its inception, and later adding the American QML-V certification.

By owning the entire semiconductor process — from design and development to manufacturing and testing — ST guarantees the quality, reliability, and performance essential for space applications and the

high-volume production LEO constellations require. For a decade, our BiCMOS chip technology has played a vital role in shaping the LEO connectivity landscape that is transforming global internet access.

Optical & RF COT

We offer RF, digital and mixed-signal ASICs, which are based on our proprietary FD-SOI, RF-SOI, and BiCMOS technologies, as well as foundry-based FinFET technologies, for satellite communications as well as networking infrastructure.

We also use our proprietary FD-SOI, RF-SOI, and BiCMOS technologies to provide RF and mmWave components for terrestrial communication, based on our know-how in analog and digital beamforming design techniques, to address massive MIMO antenna.

We also address the fast-growing market of cloud-optical interconnect in data centers based on our BiCMOS and SiPho technologies.

Digital Audio & Signaling Solutions

Our car infotainment portfolio includes comprehensive solutions for digital radios, audio amplification and positioning systems. We are a leader in the audio infotainment market, with a wide range of power amplifiers, from head units to premium audio, from telematics to AVAS.

The positioning portfolio includes families of SoC and RF solutions capable of receiving signals from different bands and multiple satellite constellations, enhancing the accuracy of the user's position even under poor satellite visibility conditions.

ST is also a leading provider of radio solutions for automotive infotainment systems and offers digital and analog terrestrial and satellite receivers, as well as multi-standard ICs designed to deliver world-class performance and functionality.

Ranging & connectivity

We are also developing new ranging and positioning products such as ultra-wide band and radar systems, as well as building connectivity products, including 60GHz contactless point-to-point communications over a short range. In 2025, we announced mass-production start for our ST67W module combining Wi-Fi 6, Bluetooth low energy 5.4 and Matter. It is the first product of ST’s collaboration with Qualcomm Technologies, Inc. announced in 2024, to simplify implementing wireless connectivity in systems containing STM32 MCUs.

3.Report of the Managing Board

In accordance with Dutch law, our management is entrusted to our managing board (our "Managing Board") under the supervision of our supervisory board (our "Supervisory Board"). Under our articles of association (the “Articles of Association”), the members of our Managing Board are appointed for a three-year term at our AGM, by a simple majority of the votes cast, provided quorum conditions are met, upon a non-binding proposal by our Supervisory Board, which term may be renewed one or more times. On May 22, 2024, our AGM was held (the "2024 AGM") and Mr. Jean-Marc Chery was reappointed as member of our Managing Board with the function of President and Chief Executive Officer (our "President and Chief Executive Officer" or "CEO"), for a three-year term expiring at our 2027 AGM. At our 2024 AGM Mr. Lorenzo Grandi was appointed as member of the Managing Board with the function of President and Chief Financial Officer (our "President and Chief Financial Officer" or "CFO"), for a three-year term expiring at our 2027 AGM. We continue to review and strengthen the succession planning for the Managing Board to ensure business continuity, taking into account, amongst others, the rapidly changing technological, social, economic and regulatory developments in our industry.

3.1. Statement of the members of our Managing Board

The members of our Managing Board hereby declare that, to the best of their knowledge, the statutory financial statements as of December 31, 2025, and for the year then ended, prepared under Title 9 of Book 2 of the Dutch Civil Code and in accordance with IFRS as adopted by the EU, provide a true and fair view of the assets, liabilities, financial position and profit or loss of STMicroelectronics N.V. and the undertakings included in the consolidation taken as a whole. Furthermore, the members of our Managing Board hereby also declare that the report of the Managing Board includes a true and fair view concerning the statement of financial position as of December 31, 2025. The report of the Managing Board also includes the development and performance of STMicroelectronics N.V. and the undertakings included in the consolidation taken as a whole, together with the principal risk and uncertainties they face.


Jean-Marc Chery,			Lorenzo Grandi,
Chairman of our Managing Board,			Member of our Managing Board,
President and Chief Executive Officer			President and Chief Financial Officer

3.2. Business overview and performance

3.2.1. Results highlights for the year 2025

Our total available market is defined as “TAM”, while our serviceable available market is defined as “SAM” and represents the market for products sold by us (i.e., TAM excluding major devices such as microprocessors, graphics processing units / AI accelerators, DRAM and flash-memories, optoelectronics devices other than optical sensors, video processing and wireless application specific market products, such as baseband and application processors).

Based on industry data published by World Semiconductor Trade Statistics (“WSTS”), semiconductor industry revenues in 2025 increased on a year-over-year basis by approximately 26% for the TAM and by approximately 15% for the SAM, to reach approximately $792 billion and $279 billion, respectively.

Full year 2025 total revenues decreased 11.1% to 11.80 billion from $13.27 billion in 2024, as a result of an approximate 6% decrease in average selling prices, due to product mix and lower selling prices, and a 5% decrease in volumes. By reportable segments, AM&S revenues decreased 6.3%, driven by lower volumes of approximately 11%, partially offset by higher average selling prices of approximately 5% due to a more favorable product mix. P&D revenues decreased 31.5%, driven by lower average selling prices of approximately 29% due to a less favorable product mix and lower selling prices, and lower volumes of approximately 3%. EMP revenues decreased 7.1% due to lower volumes of approximately 4% and lower average selling prices of approximately 3% mainly driven by a less favorable product mix. RFOC revenues decreased by 4.9%, driven by lower average selling prices of approximately 19%, due to less favorable product mix, partially offset by higher volumes of approximately 14%.

Starting 2025, we engaged in a company-wide program aimed to reshape our manufacturing footprint by accelerating the wafer fab capacity to 300mm silicon (Agrate, Italy and Crolles, France) and 200mm silicon carbide (Catania, Italy) and resizing our global cost base. This program is expected to result in strengthening our capability to grow revenues with an improved operating efficiency. Impairment, restructuring charges and other related phase-out costs, totaled $376 million in 2025, of which $189 million of impairment charges, reflecting the comprehensive impairment test carried out during the year, which accounted for the majority of impairment charges recorded and relate to the company-wide program aimed at reshaping our manufacturing footprint and resizing our global cost base. In 2025, we also recorded $176 million of restructuring charges, of which $97 million for labor-related costs and $79 million for non-labor related costs. We also recorded $11 million of phase out costs. No impairment and restructuring charges related to the launch of the company-wide program were recorded in 2024.

We believe Gross Margin and Operating Margin provide useful information as they measure the profitability of our operations. Gross Margin is defined as gross profit divided by total revenues. Gross profit is calculated as total revenues minus cost of sales. Operating Margin is defined as operating profit divided by total revenues. Operating profit is calculated as gross profit net of operating expenses, other income and other expenses.

Our 2025 Gross Margin decreased 780 basis points to 29.3% from 37.1% in 2024, mainly due to lower manufacturing efficiencies and, to a lesser extent, sales price and mix, lower level of capacity reservations fees, negative currency effect and higher unused capacity charges. Our 2025 Gross profit includes $159 million impairment charges on productive assets, $91 million restructuring charges and $11 million of related phase-out costs, following the launch and subsequent execution of our company-wide program aimed to reshape our manufacturing footprint and resize our global cost base.

Operating Margin was 2.7% in 2025, a decrease of 1,000 bps from 12.7% in 2024, mainly driven by the combining effect of lower revenues and gross margin profitability. Operating profit in 2025 decreased to $320 million compared to $1,688 million in 2024. Operating profit in 2025 included $376 million impairment, restructuring charges and other related phase-out costs.

Our operating expenses, comprised of aggregated SG&A and R&D expenses, amounted to $3,435 million in 2025, slightly increasing from $3,375 million in the prior year. SG&A and R&D expenses include $84 million restructuring charges and $31 million impairment charges. Other income and expenses, net, was

$301 million in 2025 compared to $140 million in 2024, increasing mainly due to positive currency effects and lower start-up costs, partially offset by lower public funding.

Combined finance income and costs resulted in a net income of $228 million, compared to a net income of $616 million in 2024, and reflect in both years the IFRS accounting of our convertible bonds. The 2025 finance income included a gain of $14 million for the fair value adjustment of the embedded bondholders’ conversion options on outstanding convertible bonds (compared to a gain of $477 million in 2024).

Full year 2025 net profit was $299 million or $0.33 diluted earnings per share, compared to net profit of $1,987 million, or $2.19 diluted earnings per share for the full year 2024.

Net Capex (non-GAAP measure) was $1,792 million for the year 2025 compared to $2,531 million for the year 2024. The main driver of our capital expenditures is our efforts in investing in our SiC production facilities, our 300mm wafer front-end facilities, and in our back-end manufacturing capacity.

During 2025, our net cash increased by $555 million, with net cash from operating activities amounting to $2.57 billion. During 2025, we paid $367 million for the repurchase of ordinary shares, $321 million of cash dividends to our shareholders, $239 million for long-term financial debt repayment, and $750 million of repayment of convertible debt, partially offset by $156 million of proceeds from noncontrolling interest.

Our Net Capex, Free Cash Flow, Net Financial Position and Adjusted Net Financial Position are non-GAAP measures and are further described in Section 3.2.5. (Liquidity and financial position).

3.2.2. Business overview

We are a global semiconductor company that designs, develops, manufactures and markets a broad range of products used in a wide variety of applications for the four end-markets we address: Automotive, Industrial, Personal Electronics and Communications Equipment, Computers and Peripherals (each as defined below). For the Automotive and Industrial markets we address a wide customer base, particularly in Industrial, with a broad and deep product portfolio. In Personal Electronics and in Communications Equipment, Computers and Peripherals we have a selective approach both in terms of the customers we serve, as well as in the technologies and products we offer, while leveraging our broad portfolio to address high-volume applications.

Our diverse product portfolio includes discrete and general purpose components, ASIC, full-custom devices and semi-custom devices and ASSPs for analog, digital and mixed-signal applications. It benefits from a unique, strong foundation of proprietary and differentiated leading-edge technologies, supported by a comprehensive software development ecosystem. We use all prevalent function-oriented process technologies, including CMOS, bipolar and non-volatile memory technologies. In addition, by combining basic processes, we have developed advanced systems-oriented technologies that enable us to produce differentiated and application-specific products, including FD-SOI technology offering superior performance and power efficiency compared to bulk CMOS, BiCMOS and RF-SOI for mixed-signal and high-frequency wireless and wired communications applications, SiPho technology using silicon-based materials to develop photonic circuits, as well as BCD, VIPpower, and intelligent integrated gallium-nitride ("STI2GaN") technologies for smart power applications, power MOSFET, SiC and gallium-nitride GaN for high-efficiency systems, MEMS technologies for sensors and actuators, embedded non-volatile memory technologies for our microcontrollers and differentiated optical sensing technologies for our optical sensing solutions.

Further information on our business model is included in Section 2 (Corporate Overview) above and Sections 3.2.2.1. (Strategy and objectives) et seq. below.

3.2.2.1. Strategy and objectives

We are 48,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. As an integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities and the need to enable and support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things.

Our strategy focuses on sustainable long-term value creation for the Company and its affiliated enterprises and takes into account the short-, medium- and longer-term evolution of the markets we serve and the environment and opportunities we see. It stems from key long-term trends in electronic systems. These key trends are: smart mobility, where we provide innovative solutions to help car manufacturers make driving safer, greener and more connected; power & energy: our technology and solutions enable industries to increase energy efficiency and support the use of renewable energy and cloud-connected autonomous things, which transform our lives and the objects we use with smart, connected devices for personal, business and industrial applications.

We are exposed to company-specific growth drivers including: (i) in Automotive: engaged customer programs in ADAS, silicon carbide power devices and sensors; (ii) in Industrial: general purpose MCUs; (iii) in Personal Electronics: engaged customer programs in sensors and analog; (iv) in Communication Equipment and Computer Peripherals: data centers, including cloud optical interconnect and Power and Analog for AI servers and data centers and low earth orbit ("LEO") satellites. We are also uniquely positioned to address humanoid robotics through our broad portfolio spanning MCUs, MEMS, optical sensors, global navigation satellite system ("GNSS") and power management.

Our global integrated device manufacturer operational model provides us with a wide range of capabilities in proprietary and innovative technology & IP design, product and solution development, and with advanced manufacturing - both in-house and with selected partners - providing us with a strong competitive advantage and supply chain resilience for our customers.

Our value proposition for stakeholders is focused on sustainable and profitable growth, providing differentiating enablers to customers and a strong commitment to sustainability. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027.

3.2.2.2. Employees

The tables below set forth the breakdown of employees by geographic area and category of main activity for the past two years.


	2025(1)	2024(1)	2024(2)
France	12,509	12,957	11,528
Italy	12,645	12,726	12,745
Rest of Europe	1,133	1,215	1,169
Americas	710	816	821
Mediterranean (Malta, Morocco, Tunisia)	4,986	5,424	5,374
Asia	17,174	17,746	17,965
Total	49,157	50,884	49,602


	2025(1)	2024(1)	2024(2)
Research and Development	9,461	9,624	9,257
Marketing and Sales	2,556	2,757	2,698
Manufacturing	30,546	31,742	31,133
Administration and General Services	3,388	3,427	3,323
Product Group Functions	3,206	3,334	3,192
Total	49,157	50,884	49,602

(1) The total headcount disclosed in these columns has been calculated using the employee definition provided for in the CSRD guidance. As of 2025 ST has adopted the CSRD definition for its employee calculations moving forward.

(2) The total headcount disclosed in these columns has been calculated using the employee definition used by ST up until 2024.

Our future success will partly depend on our ability to continue to attract, retain and motivate highly qualified technical, marketing, engineering and management personnel, as well as on our ability to timely adapt the size and/or profile of our personnel to changing industry needs. Unions are represented at almost all of our manufacturing facilities and at several of our R&D sites. We use temporary employees if required during production spikes and, in Europe, during summer vacation. We have not experienced any significant strikes or work stoppages in recent years.

More detailed information on our employees can be found in Section 3.4.4.1.E.2. (Metrics - Characteristics of the undertaking’s employees).

3.2.2.3. Alliances with Customers and Industry Partnerships

We believe that customer alliances and industry partnerships are critical to our success in the semiconductor market. Customer alliances provide us with valuable systems and application know-how, anticipate architecture trends and access to markets for key products, while enabling our customers to gain access to our technologies and manufacturing infrastructure. We are actively working to expand the number of our customer alliances, targeting key global original equipment manufacturers ("OEMs") as well as emerging, innovative customers and partners around the globe.

From time to time we collaborate with other semiconductor industry companies, research organizations, universities, customers, experts and suppliers to further our R&D efforts. Such collaboration provides us with a number of important benefits, including acquisition of technical know-how, access to additional production capacities, sharing of costs and reductions in our own capital requirements.

3.2.2.4. Customers and Applications

We design, develop, manufacture and market thousands of products which we sell to over 200,000 customers. We emphasize a broad and balanced product portfolio, in the applications and regional markets we serve, which helps foster closer, strategic relationships with customers. Our major customers include (in alphabetical order) Apple, Bosch, Continental, Denso, HP, Mobileye, Samsung, SpaceX, Tesla and Vitesco. This broad product breadth provides opportunities to enable application solutions and to supply such customers’ requirements for all their product and technology needs. We also sell our products through our distribution channel.

In Automotive (as defined below), we have identified a significant evolution of the relationship with customers. Historically, semiconductor companies addressed the needs of carmakers mostly through tier 1 and/or tier 2 automotive industry suppliers with whom we work closely. In recent years there has been an accelerated transformation of the automotive industry driven by the electrification and the digitalization of vehicles, significantly increasing the amount and complexity of semiconductor products in vehicles. As a result, and following further from the supply chain challenges which arose during and after the COVID-19 pandemic, carmakers are taking a more direct role in the decision making and control of both

the semiconductor strategy and supply for their vehicles. Carmakers now have a more direct relationship with companies such as ours, notably playing a more active role in defining the specific solutions they require, as well as in certain instances engaging in direct co-operation agreements. We are committed to playing a major role in these new business models and we see multiple opportunities for co-operation with carmakers in this area, while also continuing to build on our co-operation with tier 1 and tier 2 automotive industry suppliers.

3.2.2.5. Sales, Marketing and Distribution

Our sales and marketing is organized by a combination of key accounts and regional sales units organized by market segment with the primary objective of accelerating sales growth and gaining market share. Emphasis is placed on strengthening the development of our global and major local accounts; boosting demand creation through an enhanced focus on geographical and key accounts coverage with strong technical and application expertise, supported application labs and competence centers. The mass market is covered through a joint effort with our distribution partners and local initiatives; establishing regional sales and marketing teams that are fully aligned with our end-markets and products strategies across our focused market segments: Automotive, Industrial Power and Energy, Industrial Smart industrials, Personal Electronics and Communications Equipment, Computers and Peripherals.

We have four regional sales organizations reporting to a global head of sales & marketing: Americas, Asia Pacific excluding China ("APeC"), China and Europe, Middle-East and Africa ("EMEA"). Our regional sales organizations have a similar structure to enhance global coordination and go-to-market activities. The sales and marketing teams are strongly focused on profitable revenue growth and business performance as well as on fostering demand creation, expanding the customer base, expanding products usage in customer applications (cross selling) and maximizing market share, anticipating new products needs and providing the best technical and application support in the field for our customers. The sales and marketing activities are supported by sales engineers, system marketing, product and technical marketing, application labs, competence centers, field application engineers and quality engineers.

Following our announcement in the first quarter of 2024 that we would complement the existing sales & marketing organization (the "Sales & Marketing" organization) by implementing a new segment marketing and application ("SM&A") organization, offering customers end-to-end system solutions based on our product and technology portfolio, covering our end markets, in 2025 we begun implementing five segment strategic programs (one per market segment):

•automotive ("Automotive");

•industrial power and energy ("Industrial PE");

•industrial smart industrials ("Industrial SI" and together with Industrial PE hereinafter "Industrial");

•personal electronics ("Personal Electronics"); and

•communications equipment, computers and peripherals ("Communications Equipment, Computers and Peripherals").

The regional Sales & Marketing organization remained unchanged.

We engage distributors and sales representatives to distribute and promote our products around the world. Typically, distributors handle a wide variety of products, including those that compete with ours. Our distributors have a dual role, the major one being the business development through demand creation and customer base expansion, the other is to assist in fulfilling the demand of our customers by servicing their orders. Most of our sales to distributors are made under specific agreements allowing for price protection and stock rotation for unsold merchandise. Sales representatives, on the other hand, generally do not offer products that compete directly with our products, but may carry complementary items manufactured by others.

At the request of certain customers, we also sell and deliver our products to EMS companies, which, on a contractual basis with our customers, incorporate our products into the application specific products they manufacture for our customers. We also sell products to original design manufacturers (“ODM”). ODMs manufacture products for our customers much like electronics manufacturing services companies do, but they also design applications for our customers, and in doing so themselves select the products and suppliers that they wish to purchase from.

In furtherance of our strong commitment to quality, our sales organizations include personnel dedicated to close monitoring and resolution of quality-related issues.

3.2.2.6. Research and Development

We believe that market driven R&D based on leading-edge products and technologies is critical to our success. We devote significant effort to R&D because we believe such investment can be leveraged into competitive advantages: about 19.25% of our employees work in R&D on product design/development and technology and, in 2025, we spent approximately 14.5% of our total revenues on R&D.

New developments in semiconductor technology can make end products significantly cheaper, smaller, faster, more reliable and embedded than their predecessors, with differentiated functionalities. They can enable significant value creation opportunities with their timely appearance on the market. Our innovations in semiconductor technology as well as in hardware and software contribute to the creation of successful products that generate value for us and our customers. Our complete design platforms, including a large selection of IP and silicon-proven models and design rules, enable the fast development of products designed to meet customer expectations in terms of reliability, quality, competitiveness in price and time-to-market. Through our R&D efforts, we contribute to making our customers’ products more efficient, more appealing, more reliable and safer.

Our technology R&D strategy is based on the development of differentiated technologies, allowing for a unique offer in terms of new products and enabling new applications opportunities. We draw on a rich pool of fabrication technologies for chips and products, including advanced digital CMOS on FD-SOI, embedded non-volatile memories, analog and mixed-signal, optical sensing, integrated photonics, MEMS, BCD for smart power, power transistors and diodes, power SiC and GaN processes, BiCMOS, and SiPho. This is well embedded in our strong packaging technologies portfolio, such as high pin count BGA, wafer level packaging, panel-level packaging, highly integrated sensor packages and leadframe package power products. We combine both front-end and back-end manufacturing and technology R&D under the same organization to ensure a smooth flow of information between our R&D and manufacturing organizations. We leverage significant synergies and shared activities between our product groups to cross-fertilize them. We also use silicon foundries and test and packaging suppliers ("OSATs").

We have advanced R&D and innovation centers which offer us a significant advantage in quickly and cost effectively introducing products. Furthermore, we have established a strong culture of partnerships and through the years have created a network of strategic collaborations with key customers, suppliers, competitors, and leading universities and research institutes around the world. We also play leadership roles in numerous projects running under the "Information Society Technologies" programs of the EU. We also participate in certain collaborative R&D and innovation programs established by the EU Commission, individual countries and local authorities in Europe (primarily in France and Italy) and in Singapore. We currently own over 21,000 active and pending patents worldwide.

The total amount of our R&D expenses was $1,713 million and $1,726 million in 2025 and 2024, respectively, while the total amount of R&D expenses capitalized amounted to $380 million and $354 million in 2025 and 2024, respectively.

3.2.2.7. Property, Plants and Equipment

We are an integrated device manufacturer with the ability to control and optimize the value chain, from semiconductor process development, chip design, testing and validation, wafer fabrication, to assembly, testing, and delivery to our customers. At ST, manufacturing is based on our owned and operated facilities in EMEA and in Asia, complemented by outsourcing in both front-end and back-end processes. This enables us to provide customers with an independent, flexible and robust manufacturing and supply chain, which aids in our success. In addition, our proprietary semiconductor process technologies highlighted above enable product differentiation. We believe that the combination of these two aspects represent a differentiating factor for our company as compared to fabless semiconductor companies and semiconductor foundries.

We currently operate fourteen main manufacturing sites around the world. Please refer to Appendix 11.5. for a list of our main manufacturing sites.

As of December 31, 2025, our front-end facilities had a total maximum capacity of approximately 140,000 wafer starts per week (200mm equivalent). The number of wafer starts per week varies from facility to facility and from period to period as a result of changes in product mix.

We own all of our manufacturing facilities, but certain facilities (Muar, Malaysia; Shenzhen, China; Kirkop, Malta; Toa Payoh and Ang Mo Kio, Singapore) are built on land subject to long-term leases.

We have historically subcontracted a portion of total manufacturing volumes to external suppliers. In 2025, we subcontracted approximately 25% of the value of our total silicon production to external foundries. Our plan is to continue sourcing silicon from external foundries and OSATs to give us flexibility in supporting our growth.

As of December 31, 2025, we had approximately $1,3 billion in outstanding orders for purchases of equipment (certain of which are subject to cancellation or amendment in accordance with their terms) and other assets for delivery in 2026. In 2025, our capital expenditure payments (defined as payments for purchases of tangible assets), net of proceeds from sales, capital grants and other contributions, was $1,844 million compared to $2,642 million in 2024. In the 2023-2025 period the ratio of capital expenditure payments, net of proceeds from sales, capital grants and other contributions to total revenues was about 20%.

3.2.2.8. Intellectual Property

Our success depends in part on our ability to obtain patents, licenses and other IP rights to protect our proprietary technologies and processes. Intellectual property ("IP") rights that apply to our various products include patents, copyrights, trade secrets, trademarks and mask work rights. We currently own over 21,000 active and pending patents worldwide.

We believe that our IP represents valuable assets. We rely on various IP laws, confidentiality procedures and contractual provisions to protect our IP assets and enforce our IP rights. To optimize the value of our IP assets, we have engaged in licensing our design technology and other IP, including patents, when consistent with our competitive position and our customers’ interests. We have also entered into broad-scope cross-licenses and other agreements which enable us to design, manufacture and sell semiconductor products using the IP rights of third parties and/or operating within the scope of IP rights owned by third parties.

From time to time, we are involved in IP litigation and infringement claims. Regardless of the validity or the successful assertion of such claims, we may incur significant costs with respect to the defense thereof, which could have a material adverse effect on our results of operations, cash flow or financial condition.

3.2.2.9. Backlog

Our sales are made primarily pursuant to standard purchase orders that are generally booked from one to eighteen months in advance of delivery. Quantities actually purchased by customers, as well as prices, are subject to variations between booking and delivery and, in some cases, to cancellation due to changes in customer needs or industry conditions. During periods of economic slowdown and/or industry overcapacity and/or declining selling prices, customer orders are not generally made far in advance of the scheduled shipment date. Such reduced lead time can diminish management’s ability to forecast production levels and revenues. When the economy rebounds, our customers may strongly increase their demands, which can result in capacity constraints due to a time lag when matching manufacturing capacity with such demand.

In addition, our sales are affected by seasonality, with the first half generally showing lowest revenue levels in the year, and the third or fourth quarter historically generating higher amounts of revenues partly as a result of the seasonal dynamics for smartphone applications dynamics.

We also sell certain products to key customers pursuant to frame contracts. Frame contracts are annual contracts with customers setting forth quantities and prices on specific products that may be ordered in the future. These contracts allow us to schedule production capacity in advance and allow customers to manage their inventory levels consistent with just-in-time principles while shortening the cycle times required to produce ordered products. Orders under frame contracts are also subject to a high degree of volatility, because they reflect expected market conditions which may or may not materialize. Thus, they are subject to risks of price reduction, order cancellation and modifications as to quantities actually ordered resulting in inventory build-ups.

Furthermore, developing industry trends, including customers’ use of outsourcing and their deployment of new and revised supply chain models, may reduce our ability to forecast changes in customer demand and may increase our financial requirements in terms of capital expenditures and inventory levels.

We entered 2025 with a backlog lower than we had entering 2024. For 2026, we entered the year with a backlog higher than what we had entering 2025.

3.2.2.10. Competition

Markets for our products are intensely competitive. We compete with major international semiconductor companies and while only a few companies compete with us in all of our product lines, we face significant competition from each of them. Smaller niche companies are also increasing their participation in the semiconductor market, and semiconductor foundry companies have expanded significantly, particularly in Asia. Competitors include manufacturers of standard semiconductor devices, ASICs and fully customized ICs, including both chip and board-level products, as well as customers who develop their own IC products and foundry operations. Some of our competitors are also our customers or suppliers. We compete in different product lines to various degrees on the basis of price, technical performance, product features, product system compatibility, customized design, availability, quality and sales and technical support. In particular, standard products may involve greater risk of competitive pricing, inventory imbalances and severe market fluctuations than differentiated products. Our ability to compete successfully depends on factors both within and outside our control, including successful and timely development of new products and manufacturing processes, product performance and quality, manufacturing yields and product availability, customer service, pricing, industry trends and general economic trends.

The semiconductor industry is characterized by the high costs associated with developing marketable products and manufacturing technologies as well as high levels of investment in production capabilities. As a result, the semiconductor industry has experienced, and is expected to continue to experience, significant vertical and horizontal consolidation among our suppliers, competitors and customers, which

could lead to erosion of our market share, impact our capacity to compete and require us to restructure our operations.

3.2.2.11. Public Funding

We receive public funding mainly from EU member states (including France, Italy and Malta) and China. Such funding is generally provided to encourage R&D and innovation activities, enhance industrialization, and contribute to Capex for certain strategic programs, as well as national, regional and local economic development. Our funding programs are classified under four general categories: funding for research, development and innovation (“RDI”) activities, funding for first industrial deployment ("FID") activities and capital investment for pilot lines, and tax credits. We benefit from tax credits for R&D activities in several countries which are generally available to all companies.

The main R&D, RDI and FID programs in which we are involved include: (i) Important Projects of Common European Interest ("IPCEI") which combines R&D, RDI as well as FID activities; (ii) Chips JU/ECS program, which combines all electronics related R&D activities and is operated by a joint undertaking formed by the EU, certain member states and industry; (iii) EU R&D projects within Horizon Europe (the EU's research and innovation framework); and (iv) national or regional programs for R&D and for industrialization in the electronics industries involving many companies and laboratories.

In December 2018, the European Commission announced the approval of the IPCEI on Microelectronics ("IPCEI ME"), a pan-European project initiated to foster research and innovation in microelectronics to be funded by Germany, France, Italy, the U.K. and Austria.

In our combined role as beneficiary of the IPCEI ME, we have recognized grants of €266.1 million for the period 2018-2022 in France (locally referenced as Nano2022) which was linked to technical objectives and associated achievements, and were allocated approximately €789 million for the period 2018-2024 in Italy. The IPCEI ME program significantly strengthened our leadership in key technologies. It has contributed to anticipating, accelerating, and securing our technological developments. The IPCEI ME program also has wide ranging, pan-European benefits on the microelectronics ecosystem from education to downstream industries.

In December 2021, we took part in a new IPCEI program, titled IPCEI on Microelectronics and Communication Technologies (“IPCEI ME/CT”). This new pan-European project, approved by the European Commission in June 2023, was initiated to foster research and innovation and kick-start the first industrialization of microelectronics. It involves ST in France (2022-2026), Italy (2023-2027) and Malta (2021-2026), as well as around 56 other companies across 14 European countries. In 2025 we recognized grants of €24.8 million and €163.7 million related to our respective participations in IPCEI ME and IPCEI ME/CT in Italy, €117 million related to our participation in IPCEI ME/CT, Chips JU/ECS and other national and European programs in France and $39.7 million related to our participation in IPCEI ME/CT in Malta.

On October 4, 2022, the European Commission approved, under EU State Aid rules, a support up to €292.5 million through the Italian Recovery and Resilience Plan for the construction of a new integrated SiC substrate manufacturing facility in Catania, Italy. In 2025 we recognized grants of €9.2 million related to this project.

On April 28, 2023, the European Commission approved, under EU State Aid rules, a French aid measure to support the Company and GlobalFoundries in the construction and operation of a front-end semiconductor production facility in Crolles, France. This project represents an overall projected cost of €7.5 billion for capital expenditure, maintenance and ancillary costs. The new facility will benefit from significant financial support of up to around €2.9 billion from France for GlobalFoundries and ST. In 2025 we received around €126 million in cash and recognized grants of €72 million from this program in Crolles, France, as a result of our program execution.

On May 31, 2024, the European Commission approved, under the EU State Aid rules, an Italian aid measure to support the Company in the construction and operation of an integrated chip manufacturing

plant for SiC power devices in Catania, Italy. The aid will take the form of a €2 billion direct grant to ST to support its planned investment of €5 billion in capital expenditure. The measure will strengthen Europe's security of supply, resilience and digital sovereignty in semiconductor technologies. The measure will also contribute to achieving the digital and green transitions. On October 13, 2025, the European Commission formally granted ST the status of Integrated Production Facility ("IPF") as referenced in the European Chips Act.

These projects are “first-of-a-kind” facilities in Europe in line with the ambitions and objectives of the European Chips Act.

On June 7, 2023, the Company and Sanan Optoelectronics jointly created SANAN, STMicroelectronics Co. Ltd. (“Sanan ST JV”), for high-volume 200mm SiC device manufacturing in China. This joint venture will make SiC devices exclusively for us, using our proprietary SiC manufacturing process technology, and will serve as a dedicated foundry to support the demand of our Chinese customers. The total amount for the full buildout of the joint venture’s future operations is expected to be about $3.2 billion, including capital expenditures of about $2.4 billion over a 5 year period as of 2023, for which Sanan ST JV receives local government support through a funding program with Chinese regional authorities.

3.2.2.12. Suppliers

We use three primary critical types of suppliers in our business: (i) equipment suppliers, (ii) material suppliers and (iii) external silicon foundries and test & packaging subcontractors. We also purchase third-party licensed technology from a limited number of providers.

In the front-end process, we use steppers, scanners, tracking equipment, strippers, chemo-mechanical polishing equipment, cleaners, inspection equipment, etchers, physical and chemical vapor-deposition equipment, implanters, furnaces, testers, probers and other specialized equipment. The manufacturing tools that we use in the back-end process include bonders, burn-in ovens, testers and other specialized equipment. The quality and technology of equipment used in the IC manufacturing process defines the limits of our technology. Demand for increasingly smaller chip structures means that semiconductor producers must quickly incorporate the latest advances in process technology to remain competitive. Advances in process technology cannot occur without commensurate advances in equipment technology, and equipment costs tend to increase as the equipment becomes more sophisticated.

Our manufacturing processes consume significant amounts of energy and use many materials, including silicon and SiC, GaN and glass wafers, lead frames, mold compound, ceramic packages and chemicals, gases and water. The prices of energy, such as electricity and natural gas, and many of these materials are volatile due to the specificity of the market, and other factors including geopolitics. We have therefore adopted a “multiple sourcing strategy” designed to protect us from the risk of price increases. The same strategy applies to energy and to supplies for the materials used by us to avoid potential material disruption of essential materials and to ensure the continuity of energy supply. Our “multiple sourcing strategy”, our financial risk monitoring as well as the robustness of our supply chain and strong partnership with suppliers are intended to mitigate these risks.

Finally, we also use external subcontractors to outsource wafer manufacturing and assembly and testing of finished products.

3.2.3. Key announcements

On March 9, 2026, we announced that we are entering high-volume production of our state-of-the-art silicon photonics-based PIC100 platform used by hyperscalers for optical interconnect for data centers and AI clusters.

On February 9, 2026, we announced an expanded strategic collaboration with Amazon Web Services ("Amazon") through a multi-year, multi-billion USD commercial engagement serving several product categories, to enable new high performance compute infrastructure for cloud and AI data centers.

On February 2, 2026, we announced the closing of the acquisition of NXP Semiconductors' MEMS sensor business, first announced on July 24, 2025. This transaction, focused on automotive safety and non-safety products and sensors for industrial applications, expands ST’s global sensors capabilities and strengthens our global sensors capabilities, unlocking new opportunities for development across automotive, industrial and consumer applications. The transaction was subject to customary closing conditions, including regulatory approvals, which have now been satisfied or waived, and closed on February 2, 2026.

On December 18, we held an Extraordinary General Meeting of Shareholders ("EGM"), in Amsterdam, the Netherlands. The proposed resolutions, all approved by our Shareholders were:

•the appointment of Mr. Armando Varricchio, as member of the Supervisory Board, for a term expiring at the end of the 2028 AGM; and

•the appointment of Mr. Orio Bellezza, as member of the Supervisory Board, for a term expiring at the end of the 2028 AGM.

On December 11, we announced that ST and the European Investment Bank ("EIB") have signed a €500 million financing agreement to boost Europe’s competitiveness and strategic autonomy. This represented the first tranche of a broader €1 billion credit line approved by the EIB in favor of ST.

On November 20, we announced that ST and TSE, a leading player in solar energy and agrivoltaics in France, have signed a 15-year Power Purchase Agreement ("PPA") to supply renewable electricity from solar parks to STMicroelectronics’ sites in France.

On November 18, we announced the introduction by ST of the industry’s first 18nm microcontroller for high-performance applications.

On October 21, we announced that ST and SP Group, a leading utilities group in the Asia Pacific and Singapore’s national grid operator, have commenced operations for Singapore’s largest industrial district cooling system at our Ang Mo Kio TechnoPark, reducing carbon emissions by up to 120,000 tonnes annually and cutting cooling electricity use by 20%. This energy-efficient system supports our goal of carbon neutrality by 2027 and earned Green Mark Platinum certification for sustainability and design excellence.

On September 17, we announced that we are advancing our next-generation Panel-Level Packaging technology with a new pilot line at our Tours, France site, operational by Q3 2026. This $60 million investment aims to boost our manufacturing efficiency and innovation for automotive, industrial, and consumer applications, reinforcing ST’s leadership in chip packaging and heterogeneous integration in Europe.

On August 20, we published our IFRS 2025 Semi Annual Accounts for the six-month period ended June 28, 2025 on our website and filed them with the Netherlands Authority for the Financial Markets (Authoriteit Financiële Markten).

On May 28, we held our AGM, in Amsterdam, the Netherlands. The proposed resolutions, all of which were approved by our Shareholders, were:

•the adoption of the Company's Statutory Annual Accounts for the year ended December 31, 2024, prepared in accordance with IFRS and filed with the Netherlands Authority for the Financial Markets on March 27, 2025;

•the distribution of a cash dividend of $0.36 per outstanding share of the Company’s common stock to be distributed in quarterly installments of $0.09 in each of the second, third and fourth quarters of 2025 and first quarter of 2026 to shareholders of record in the month of each quarterly payment;

•the adoption of the remuneration for the members of the Supervisory Board;

•the appointment of Mr. Werner Lieberherr, as member of the Supervisory Board, for a three-year term expiring at the end of the 2028 AGM, in replacement of Ms. Janet Davidson whose mandate has expired at the end of the 2025 AGM;

•the appointment of Ms. Simonetta Acri, as member of the Supervisory Board, for a three-year term expiring at the end of the 2028 AGM in replacement of Ms. Donatella Sciuto whose mandate has expired at the end of the 2025 AGM;

•the reappointment of Mrs. Ana de Pro Gonzalo, as member of the Supervisory Board, for a three-year term to expire at the end of the 2028 AGM;

•the reappointment of Mrs. Hélène Vletter-van Dort, as member of the Supervisory Board, for a three-year term to expire at the end of the 2028 AGM;

•the appointment of PricewaterhouseCoopers Accountants N.V. as the Company’s external auditor for the financial years 2026-2029;

•the appointment of PricewaterhouseCoopers Accountants N.V. to audit the Company’s sustainability reporting for the financial years 2026-2027, to the extent required by law;

•the approval of the stock-based portion of the compensation of the President and Chief Executive Officer;

•the approval of the stock-based portion of the compensation of the President and Chief Financial Officer;

•the authorization to the Managing Board, until the conclusion of the 2026 AGM, to repurchase shares, subject to the approval of the Supervisory Board;

•the delegation to the Supervisory Board of the authority to issue new common shares, to grant rights to subscribe for such shares, and to limit and/or exclude existing shareholders’ pre-emptive rights on common shares, until the end of the 2026 AGM;

•the discharge of the member of the Managing Board; and

•the discharge of the members of the Supervisory Board.

On April 10, we detailed our Company-wide program to reshape our manufacturing footprint and resize our global cost base and confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027. Specifically, we disclosed further elements of our program to reshape our global manufacturing footprint.

On April 10, our Supervisory Board commented on statements made in the Italian press on April 9:

•accusations on the personal transactions made by the two members of our Managing Board on the eve of earnings releases are false. Stock sales done during our blackout period were made by our stock plan administrator, through an automatic procedure, to abide by Swiss tax rules for the Managing Board members and were legal and compliant with Company policy. On the class action under way, the Supervisory Board reviewed the processes and believes that ST has good defense against the allegations;

•the Supervisory Board unanimously approved the details of a Company-wide program to reshape our manufacturing footprint, accelerating ST’s wafer-fab capacity to 300mm silicon and 200mm silicon carbide, announced to the markets last year on October 31 and this year on January 30. This plan allows for a major improvement of the competitiveness of the Company; and

•the Supervisory Board expressed its renewed support to Jean-Marc Chery, Lorenzo Grandi, and the management team, notably in their capacity to execute the transformation during challenging times for the semiconductor industry.

On March 31, we announced the signature of an agreement on GaN technology development and manufacturing with Innoscience, the world leader in 8” GaN-on-Si (gallium nitride on silicon) high-performance low-cost manufacturing.

3.2.4. Financial outlook: Capital investment

Our policy is to modulate our capital spending according to the evolution of the semiconductor market. For 2026, we plan to invest between $2.0 to $2.2 billion in Net Capex (non-GAAP measure). Net Capex (non-GAAP measure) is further described in Section 3.2.5 (Liquidity and financial position).

Our Net Capex (non-GAAP measure) will support capacity additions for selected growth drivers and our manufacturing reshaping plan.

In particular:

•in Catania, Italy, the new high-volume fully vertically integrated 200mm silicon carbide manufacturing facility for power devices and modules, as well as test and packaging;

•in Chongqing, China, the new 200mm silicon carbide device manufacturing joint venture with Sanan Optoelectronics;

•in Crolles, France, 300mm wafer fab evolution for digital and Cloud Optical Interconnect;

•in Agrate, Italy, the ramp-up of the 300mm wafer fab to support analog mixed signal and smart power HCMOS; and

•capital investments in back-end facilities, which in 2026 will be largely focused on: (i) capacity growth on certain package families, (ii) the next generation of Panel-Level Packaging (PLP) technology through a pilot line in Tours, France, and (iii) selected investments for the modernization and expansion assembly and test operations.

The remaining part of our Net Capex (non-GAAP measure) covers the overall maintenance and efficiency improvements of our manufacturing operations and infrastructure, R&D activities, laboratories as well as the execution of our carbon neutrality programs.

We will continue to invest to support revenues growth and new products introduction, taking into consideration factors such as trends in the semiconductor industry, capacity utilization and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. We expect to need significant financial resources in the coming years for capital expenditures and for our investments in manufacturing and R&D. We plan to fund our capital requirements with cash provided by operating activities, available funds and support from third parties, and may have recourse to borrowings under available credit lines and, to the extent necessary or attractive based on market conditions prevailing at the time, the issuance of debt, convertible bonds or additional equity securities. A substantial deterioration of our economic results, and consequently of our profitability, could generate a deterioration of the cash generated by our operating activities. Therefore, there can be no assurance that, in future periods, we will generate the same level of cash as in prior years to fund our capital expenditure plans for expanding/upgrading our production facilities, our working capital requirements, our R&D and manufacturing costs.

We believe that we have the financial resources needed to meet our currently projected business requirements for the next twelve months, including capital expenditures for our manufacturing activities, working capital requirements, approved dividend payments, share buy-backs as part of our current repurchase program and the repayment of our debt in line with maturity dates.

3.2.5. Liquidity and financial position

We maintain an adequate cash position and a low debt-to-equity ratio to provide us with adequate financial flexibility. As in the past, our cash management policy is to finance our investment needs mainly with net cash generated from operating activities.

During 2025, our net cash increased by $555 million. The components of our net cash variation and the comparable period are set forth below:


In millions of U.S. dollars	2025	2024
Net cash from operating activities	2,573	3,342
Net cash used in investing activities	(423)	(4,096)
Net cash used in financing activities	(1,601)	(178)
Effect of changes in exchange rates	6	(8)
Net cash increase (decrease)	555	(940)

Net cash from operating activities

Net cash from operating activities is the sum of (i) net profit adjusted for non-cash items and (ii) changes in net working capital. The net cash from operating activities in 2025 was $2,573 million, decreasing compared to $3,342 million in the prior year, mainly due to lower net profit.

Net cash used in investing activities

Investing activities used $423 million of cash in 2025, decreasing compared to $4,096 million cash used in 2024, mainly due to lower payments for purchase of tangible assets, net of proceeds from sales of tangible assets, capital grants and other contributions, which totaled $1,844 million in 2025 ($2,642 million in 2024), and higher net proceeds from marketable securities and short-term deposits, which totaled $1,896 million in 2025. Capital investments for the year 2025 included (i) investments in advanced wafer fabs, such as the 300mm fab in Agrate, Italy, the 300mm fab in Crolles, France and ; (ii) SiC activities, primarily in Catania, Italy and China; and (iii) in selected programs of capacity growth in other front-end and back-end activities.

Net cash used in financing activities

Net cash used in financing activities was $1,601 million for 2025, compared to $178 million in 2024, and consisted mainly of $750 million of repayment of issued convertible bonds, $367 million repurchase of common stock, $321 million of dividends paid to our shareholders and $315 million repayment of financial debt including payment for lease liabilities, partially offset by $156 million of proceeds from noncontrolling interest.

Net Capex (non-GAAP measure)

Our Net Capex (non-GAAP measure) is derived from our U.S. GAAP Consolidated Statements of Cash Flows, which differs from our Consolidated Statements of Cash Flows under IFRS. Our Net Capex (non- GAAP measure) takes into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Net Capex is reported as part of our Free Cash Flow (non-GAAP measure).

Net Capex, a non-GAAP measure, is defined as (i) payment for purchase of tangible assets, as reported plus (ii) proceeds from sale of tangible assets, as reported plus (iii) proceeds from capital grants and other

contributions, as reported, plus (iv) advances from capital grants allocated to property, plant and equipment in the reporting period.

We believe Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies.

Our Net Capex (non-GAAP measure) is derived from our U.S. GAAP Consolidated Statements of Cash Flows, which reconciles with IFRS Consolidated Statements of Financial Position:


In millions of U.S. dollars	2025	2024
Payment for purchase of tangible assets, as reported	(2,111)	(3,088)
Proceeds from sale of tangible assets, as reported	9	5
Proceeds from capital grants and other contributions, as reported	258	441
Advances from capital grants allocated to property, plant and equipment	52	111
Net Capex (non-GAAP measure)	(1,792)	(2,531)

Net Capex decreased by $739 million, from $2,531 million in 2024 to $1,792 million in 2025, primarily due to lower payments for purchases of tangible assets.

Free cash flow (non-GAAP measure)

Our Free Cash Flow (non-GAAP measure) is derived from our U.S. GAAP Consolidated Statements of Cash Flows, which differs from our Consolidated Statements of Cash Flows under IFRS. Free Cash Flow, a non-GAAP measure, is defined as (i) net cash from operating activities plus, (ii) net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.

We believe Free Cash Flow, a non-GAAP measure, provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.

Free Cash Flow is a non-GAAP measure and does not represent total cash flow since it does not include the cash flows from, or used in, financing activities. Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchase of (and proceeds from matured) marketable securities and net investments in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates while excluding the advances from capital grants received in prior periods and allocated to property, plant and equipment in the current reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies.

Our Free Cash Flow is derived from our U.S. GAAP Consolidated Statements of Cash Flows; a reconciliation from the Consolidated Statement of Cash Flows as reported under IFRS is provided in the table below:



In millions of U.S. dollars	December 31, 2025	December 31, 2024
Net cash from operating activities as reported under IFRS	2,573	3,342
Excluding U.S. GAAP/IFRS presentation differences:
Payment for withholding tax on vested shares	23	44

Payment for operating lease liabilities	(64)	(67)




Net cash from operating activities adjusted under IFRS	2,532	3,319
Net Capex (non-GAAP measure)	(1,792)	(2,531)
Payment for purchase of intangible assets, net of proceeds from sale	(473)	(447)
Payment for purchase of financial assets, net of proceeds from sale	(2)	(53)
Free Cash Flow (non-GAAP measure)	265	288

Our Free Cash Flow was $265 million in 2025, compared to $288 million in 2024.

Capital resources

Net Financial Position and Adjusted Net Financial Position are non-GAAP measures, and they are derived from our U.S. GAAP Consolidated Balance Sheets, which differs from our Consolidated Statements of Financial Position under IFRS. Our Net Financial Position represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits and quoted debt securities; our total financial debt includes interest-bearing loans and borrowings, including current portion, as represented in our consolidated statement of financial position. Adjusted Net Financial Position represents net financial position less advances from capital grants, to present the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet. Net Financial Position and Adjusted Net Financial Position are non-GAAP measures but we believe they provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and quoted debt securities and the total level of our financial debt.

Our definition of Net Financial Position may differ from definitions used by other companies and therefore comparability may be limited. Our Net Financial Position and Adjusted Net Financial Position are derived from our U.S. GAAP Consolidated Balance Sheets, which differs from the Consolidated Statement of Financial Position under IFRS. A reconciliation with the Consolidated Statement of Financial Position under IFRS is provided in the table below:


In millions of U.S. dollars	December 31, 2025	December 31, 2024
Cash and cash equivalents	2,837	2,282

Short-term deposits	1,100	1,450
Government bonds issued by the U.S. Treasury	985	2,452
Total liquidity	4,922	6,184
Funding program loans from EIB	(1,109)	(1,178)
Credit Facility from Cassa Depositi e Prestiti SpA (“CDP SpA”)	(170)	(208)
Dual tranche senior unsecured convertible bonds	(728)	(1,457)
Other funding programs loans	(3)	(5)
Total financial debt, as reported under IFRS	(2,010)	(2,848)
Difference in dual-trench senior convertible debt amortized cost	(21)	(41)
Difference in the presentation of finance lease	(102)	(64)
Total U.S. GAAP/IFRS differences	(123)	(105)
Total financial debt, as reported under US GAAP	(2,133)	(2,953)
Net Financial Position (non-GAAP measure)	2,789	3,231
Advances from capital grants	(333)	(385)
Adjusted Net Financial Position (non-GAAP measure)	2,456	2,846

Our Net Financial Position as of December 31, 2025, was a net cash position of $2,789 million, decreasing compared to a net cash position of $3,231 million as of December 31, 2024.

As of December 31, 2025, our financial debt as reported under IFRS was $2,010 million, composed of (i) $978 million of current portion of financial debt and (ii) $1,032 million of long-term debt. The breakdown of our total financial debt included: (i) $728 million in senior unsecured convertible bonds issued in 2020, (ii) $1,109 million in EIB Loans, (iii) $170 million in CDP SpA Loans and (iv) $3 million in loans from other funding programs.

The EIB Loans are comprised of three long-term amortizing credit facilities as part of our public funding programs. The first, signed in August 2017, is a €500 million loan, in relation to R&D and capital expenditures in the European Union. The entire amount was fully drawn in Euros, corresponding to $205 million outstanding as of December 31, 2025. The second one, signed in 2020, is a €500 million credit facility agreement with EIB to support R&D and capital expenditure programs in Italy and France. The amount was fully drawn in Euros representing $352 million outstanding as of December 31, 2025. In 2022, we signed a third long-term amortizing credit facility with EIB of €600 million. Of this amount, €300 million was withdrawn in Euros in 2022, and $300 million was withdrawn in U.S dollars during 2024, representing a total outstanding balance of $552 million as of December 31, 2025. In December 2025, we entered into a €500 million financing agreement with EIB to support the acceleration of R&D and high-volume chip manufacturing in Italy and France. This agreement represents the first tranche of a broader €1 billion credit line approved by EIB in our favor. Of this amount, €500 million was withdrawn in March 2026.

The CDP SpA Loans are comprised of two long-term credit facilities. The first, signed in 2021, is a €150 million loan, fully drawn in Euros, of which $44 million were outstanding as of December 31, 2025. The second one, signed in 2022, is a €200 million loan, fully drawn in Euros, of which $126 million was outstanding as of December 31, 2025.

On August 4, 2020, we issued $1.5 billion offering of senior unsecured convertible bonds (Tranche A for $750 million and Tranche B for $750 million, each, "Tranche A" and "Tranche B", respectively), due 2025 and 2027, respectively. Tranche A bonds were issued at 105.8% as zero-coupon bonds and Tranche B bonds were issued at 104.5% as zero-coupon bonds. The conversion price at issuance was $43.62 for Tranche A equivalent to a 47.5% conversion premium and $45.10 for Tranche B, equivalent to a 52.5% conversion premium. These conversion features correspond to an equivalent of 4,585 shares per each

Tranche A bond $200,000 par value and an equivalent of 4,435 shares per each Tranche B bond $200,000 par value. The bonds are convertible by the bondholders or are callable by us following contractual terms and schedule, if certain conditions are satisfied, on a net-share settlement basis, except if we elect a full-cash or full-share conversion as an alternative settlement. The net proceeds from the bond offering were $1,567 million, after deducting issuance costs. On August 4, 2025, we completed the full redemption of our Tranche A convertible bond.

Our long-term debt contains standard conditions but does not impose minimum financial ratios. We had unutilized committed medium-term credit facilities with core relationship banks totaling $640 million as of December 31, 2025.

Our current ratings with two major rating agencies that report on us on a solicited basis, are as follows: Standard & Poor’s (“S&P”): “BBB+” with negative outlook; Moody’s Investors Service (“Moody’s”): “Baa1” with stable outlook.

3.2.6. Financial risk management

We are exposed to changes in financial market conditions in the normal course of business due to our operations in different foreign currencies and our ongoing investing and financing activities. Our activities expose us to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Our overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on our financial performance. We use derivative financial instruments to hedge certain risk exposures.

Financial risk management is carried out by our central treasury department ("Corporate Treasury”). Additionally, a Treasury Committee, chaired by our Chief Financial Officer, steers treasury activities and ensures compliance with corporate policies. Treasury activities are thus regulated by our policies, which define procedures, objectives and controls. The policies focus on managing financial risk in terms of exposure to market risk, credit risk and liquidity risk. Treasury controls are subject to internal audits. Most treasury activities are centralized, with any local treasury activities subject to oversight from our Corporate Treasury. Our Corporate Treasury identifies, evaluates and hedges financial risks in close cooperation with our subsidiaries. It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, use of derivative financial instruments, and investments of excess liquidity.

The majority of cash and cash equivalents is held in U.S. dollars and Euros and is placed with financial institutions rated at least a single “A” long-term rating from two of the major rating agencies, meaning at least A3 from Moody’s and A- from S&P or Fitch ratings, or better. These ratings are closely and continuously monitored in order to manage exposure to the counterparty’s risk. Hedging transactions are performed only to hedge exposures deriving from operating, investing and financing activities conducted in the normal course of business.

Foreign exchange risk

We conduct our business on a global basis in various major international currencies. As a result, we are exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from recognized assets and liabilities at our subsidiaries and future commercial transactions.

Cash flow and fair value interest rate risk

Our interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose us to cash flow interest rate risk. Borrowings issued at fixed rates expose us to fair value interest rate risk.

Price risk

As part of its ongoing investing activities, we may invest in publicly traded equity securities and be exposed to equity security price risk. In order to hedge the exposure to this market risk, we may enter into certain derivative hedging transactions.

In December 2024, we participated to the IPO of Innoscience (Suzhou) which became public on the main segment of Hong Kong Stock Exchange. As a publicly traded equity instrument, Innoscience investment is measured at fair value through profit and loss, with a $76M unrealized gain recorded in 2025.

Credit risk

We select banks and/or financial institutions that operate with us based on the criteria of long-term rating from at least two major rating agencies and keeping a maximum outstanding amount per instrument with each bank not to exceed 20% of the total. For derivative financial instruments, management has established limits so that, at any time, the fair value of contracts outstanding is not concentrated with any individual counterparty.

We monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, considering its financial position, past experience and other factors. The utilization of credit limits is regularly monitored. Sales to customers are primarily settled in cash, which mitigates credit risk. As of December 31, 2025 and 2024, no individual customer represented more than 10% of total trade accounts receivable. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas.

Liquidity risk

Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, short-term deposits and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. Our objective is to maintain a significant cash position and a low debt-to-equity ratio, which ensures adequate financial flexibility. Our liquidity management policy is to finance our investments with net cash from operating activities.

Management monitors rolling forecasts of our liquidity reserve based on expected cash flows.

3.3. Risk management and Internal control

The Managing Board is responsible for establishing and maintaining adequate internal risk management and control systems.

Those systems are based on the Company’s Code of Conduct, policies and procedures, operational specifications and, where applicable internationally recognized management systems (including ISO-based frameworks).

Our policies and procedures govern our internal operational, compliance and reporting processes and set forth principles, rules of behavior and conduct which are considered to be consistent with proper business management, in line with our mission and strategic objectives.

They describe the operational flow of actions to perform a task or activity, or to implement a policy within a given functional field. We perform a large number of control activities such as approvals, authorizations,

verifications, reconciliations, review of operating performance, security of assets and segregation of duties, which are deployed throughout the Company.

Our systems also contain monitoring and reporting activities as well as operational reviews.

The company's overall risk management framework as well as its main risk factors are described in Section 3.3.1. (Risk Management), specific internal control systems over financial reporting and sustainability reporting in Sections 3.3.2.1. (Internal control over financial reporting risks) and 3.3.2.2. (Internal control over sustainability reporting risks) respectively, and internal audit in Section 3.3.3. (Internal Audit). Section 3.3.4. (Statement on risk management and internal control systems) outlines the Managing Board assessment of the risk management and internal control systems.

3.3.1. Risk management

3.3.1.1. Risk management approach

Enterprise risk management framework

As a company operating globally in the semiconductor market, we are exposed to risks, particularly in the current environment of increased volatility, uncertainty, complexity and ambiguity. For a description of our risk factors, please refer to Section 3.3.1.2. (Risk factors). Our embedded approach to Enterprise Risk Management ("ERM") is formalized in a specific policy and is aligned with ISO 31000 (Risk Management).

This enables us to:

•execute our Company strategy, manage our performance, and capitalize on opportunities; and

•systematically identify, evaluate and treat specific risk scenarios.

Our ERM roadmap includes, in particular, deploying our ERM framework which is based on the following principles:

•addressing uncertainty explicitly;

•pragmatic and tailored to us;

•integral part of our processes and decision-making; and

•proactive, structured, dynamic, iterative and responsive to change.

Our ERM framework is described in the following chart:

ERM FRAMEWORK

Risk governance and process

Our overall risk approach is managed by our Chief Audit & Risk Executive (our "Chief Audit & Risk Executive") under the direct responsibility of our Managing Board and the oversight of our Supervisory Board. The scope of this oversight role is detailed in our Supervisory Board charter.

The embedded ERM process takes a holistic view, combining both company-wide top-down and bottom-up perspectives, so that specific risk scenarios are addressed at the right level. Our risk assessments are performed on a residual basis, i.e. taking into account existing controls embedded in policies and procedures as well as other risk mitigation measures. Therefore, the risk maps are not designed to be exhaustive, and feature scenarios on an exception basis.

During 2025, we refreshed our Company risk assessment with the executive management team. The output from this exercise was a risk map linked to our strategic objectives, including redefined ‘priority 1’ risk scenarios.

Corporate risk owners (members of our Senior Management) as detailed in Section 5.4. (Managing Board) were appointed for each priority risk area to develop risk response plans adapted to changing external conditions, and enhance monitoring capabilities. The risk response plans are regularly reviewed by our Executive Committee and periodically discussed with the Audit Committee.

Each ST department completes its own risk assessment. This includes marketing and sales regions, product groups, manufacturing and technology, and corporate functions. In addition, we implemented further risk assessments on selected company strategic programs, including transformation programs. Finally, the DMA process and its results are embedded into our ERM process.

Our risk governance and process are described in the following chart:

RISK GOVERNANCE AND PROCESS

Risk appetite strategy

Risk management activities are governed by our risk appetite strategy, which is discussed annually at the Supervisory Board and its audit committee (our "Audit Committee").

The risk appetite strategy defines the level and nature of risks we are willing to take or accept to achieve our objectives, depending on associated expected rewards, opportunities, and costs.

Our risk appetite strategy depends on the nature of risks and defines four stances: averse, cautious, balanced and entrepreneurial. As an illustration, this means that we strive to reduce residual exposure to a level as low as reasonably practicable or limit exposure tolerating a controlled residual level where we adopt averse / cautious stances, respectively. This is the case for the following risk categories:

•corporate governance;

•product quality;

•environment (related to ST operations incl. climate change mitigation, water and pollution);

•social (including health & safety and working conditions);

•finance;

•legal, ethics & compliance; and

•cyber security.

The illustrative risk management measures we take with regard to these risk categories are further described in Section 3.3.1.3. (Illustrative risk management measures).

3.3.1.2. Risk Factors

Below is a list of the main risk factors we believe are related to the semiconductor industry and specifically related to our operations, which may affect our results, performance, and the ability of our management to predict the future of our Company. This list of main risk factors also includes risks that we have identified to be material, including through our double materiality assessment ("DMA") performed in 2025, as described further in Section 3.4.2.3.C. (Material impacts, risks and opportunities and their interaction with strategy and business model).

Summary of Risk Factors

Risks Related to the Semiconductor Industry Which Impact Us

•We, and the semiconductor industry as a whole, have been and may be further impacted by changes in, or uncertainty about, global, regional and local economic, political, legal, regulatory and social environments as well as climate change.

•We, and the semiconductor industry, operate at a global scale. Our global asset base and market footprint expose us to negative impacts of tariffs and /or trade barriers that may inhibit our ability to place products across regions.

•The semiconductor industry is cyclical and downturns in the semiconductor industry can negatively affect our results of operations and financial condition.

•Epidemics or pandemics may impact the global economy and could also adversely affect our business, financial condition and results of operations.

•We may not be able to match our production capacity to demand.

•Competition in the semiconductor industry is intense, and we may not be able to compete successfully if our product design technologies, process technologies and products do not meet market requirements. Furthermore, the competitive environment of the industry has resulted, and is expected to continue to result, in vertical and horizontal consolidation among our suppliers, competitors and customers, which may lead to erosion of our market share, impact our ability to compete and require us to restructure our operations.

Risks Related to Our Operations

•Our high fixed costs could adversely impact our results.

•Our capital needs are high compared to those competitors who do not manufacture their own products and we may need additional funding in the coming years to finance our investments, to purchase other companies or technologies developed by third parties or to refinance our maturing indebtedness.

•Our operating results depend on our ability to obtain quality supplies on commercially reasonable terms. As we depend on a limited number of suppliers for materials, equipment and technology, we may experience supply disruptions if suppliers interrupt supply, increase prices or experience material adverse changes in their financial condition.

•Our financial results can be affected by fluctuations in exchange rates, principally in the value of the U.S. dollar.

•Our operating results may vary significantly from quarter to quarter and annually and may also differ significantly from our expectations or guidance.

•If our external silicon foundries or back-end subcontractors fail to perform, this could adversely affect our business prospects, financial condition and results of operations.

•Our manufacturing processes are highly complex, costly and potentially vulnerable to impurities, disruptions or inefficient implementation of production changes or interruptions that can significantly increase our costs and delay product shipments to our customers.

•We may experience quality problems from time to time that can result in decreased sales and operating margin and product liability or warranty claims.

•Disruptions in our relationships with any one of our key customers or distributors, and/or material changes in their strategy or financial condition or business prospects, could adversely affect our results of operations.

•We may experience delays in delivering our product and technology roadmaps as well as transformation initiatives.

•Our computer systems, including hardware, software, information and cloud-based initiatives, are subject to attempted security breaches and other cybersecurity threats, which, if successful, could adversely impact our business.

•We may not be able to integrate or optimize the use of new technologies in a timely manner, which may place us at a competitive disadvantage against other industry players.

•We may be subject to theft, loss, or misuse of personal data about our employees, customers, or other third parties, which could increase our expenses, damage our reputation, or result in legal or regulatory proceedings.

•Our business is dependent in large part on continued growth in the industries and segments into which our products are sold and on our ability to retain existing customers and attract new ones. A market decline in any of these industries, our inability to retain and attract customers, or customer demand for our products which differs from our projections, could have a material adverse effect on our results of operations.

•Market dynamics have driven, and continue to drive us, to a strategic repositioning.

•We depend on collaboration with other semiconductor industry companies, research organizations, universities, customers and suppliers to further our R&D efforts, and our business and prospects could be materially adversely affected by the failure or termination of such alliances.

•We depend on patents to protect our rights to our technology and may face claims of infringing the IP rights of others.

•We operate in many jurisdictions with highly complex and varied tax regimes. Changes in tax rules, new or revised legislation or the outcome of tax assessments and audits could cause a material adverse effect on our results.

•We receive public funding, and a reduction in the amount available to us or demands for repayment could increase our costs and impact our results of operations.

•Some of our production processes and materials are environmentally sensitive, which could expose us to liability and increase our costs due to environmental, health and safety laws and regulations or because of damage to the environment.

•Climate change, increased focus on social impact, and related sustainability regulations and initiatives, including our commitment to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027, could place additional burden on us and our operations.

•Individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.

•Loss of key employees and the inability to continuously recruit and retain qualified employees could hurt our competitive position.

•The interests of our controlling shareholder, which is in turn indirectly controlled by the French and Italian governments, may conflict with other investors’ interests. In addition, our controlling shareholder may sell our existing common shares or issue financial instruments exchangeable into our common shares at any time.

•Our shareholder structure and our preference shares may deter a change of control.

•Any decision to reduce or discontinue paying cash dividends to our shareholders could adversely impact the market price of our common shares.

•We are required to prepare financial statements under IFRS and we also prepare Consolidated Financial Statements under U.S. GAAP, and such dual reporting may impair the clarity of our financial reporting.

•There are inherent limitations on the effectiveness of our risk management and internal control(s) systems.

•Because we are subject to the corporate law of The Netherlands, U.S. investors might have more difficulty protecting their interests in a court of law or otherwise than if we were a U.S. company.

Risks Related to the Semiconductor Industry Which Impact Us

We, and the semiconductor industry as a whole, have been and may be further impacted by changes in, or uncertainty about, global, regional and local economic, political, legal, regulatory and social environments as well as climate change.

Changes in, and uncertainty about, economic, political, legal, regulatory and social conditions pose a risk as consumers and businesses may postpone spending in response to factors such as curtailment of trade and other business restrictions, financial market volatility, interest rate fluctuations, recessions, shifts in inflationary and deflationary expectations, lower capital and productivity growth, unemployment, negative news, declines in income or asset values, natural catastrophes or weather events, and/or other factors. Such global, regional and local conditions are volatile, subject to frequent change and could have a material adverse effect on customer and end-market demand for our products, thus materially adversely affecting our business and financial condition.

We may also experience a shortage of certain semiconductor composites and delays in shipments due to supply chain disruptions caused by geopolitical conflicts, natural catastrophes, extreme weather events, or punctual power outages, and sales of our products may be negatively impacted by such events, both directly and indirectly through a reduction of sales or production by our customers in or to affected areas or otherwise.

Geopolitical conflicts have additionally resulted in certain countries imposing sanctions. Further consequences of such conflicts could include a risk of further sanctions, embargoes, regional instability, geopolitical shifts and adverse effects on macro-economic conditions, currency exchange rates and financial markets. This could lead to disruption to international commerce and the global economy, and could have a negative effect on our ability to sell to, ship products to, collect payments from, and support customers in certain regions based on trade restrictions, embargoes, logistics restrictions and export control law restrictions.

We, and the semiconductor industry as a whole, face greater risks due to the international nature of the semiconductor business, including in the countries where we, our customers or our suppliers operate, such as:

•instability of foreign governments, including the threat of war, military conflict (including, among others, the recent escalation of armed conflict in the Middle-East), civil unrest, regime changes, mass migration and terrorist attacks;

•natural events such as severe weather, earthquakes and tsunamis, or the effects of climate change;

•epidemics or pandemics such as disease outbreaks and other health related issues;

•changes in, or uncertainty about, laws, regulations (including executive orders) and policies affecting trade and investment, including through the imposition of trade and travel restrictions, government sanctions, local practices which favor local companies and constraints on investment;

•complex and varying government regulations and legal standards, particularly with respect to export control regulations and restrictions, customs and tax requirements, data privacy, IP, anti-corruption, bribery, fraud and sanctions (including potential third-party product diversion risks into sanctioned countries or use for unauthorized purposes);

•differing practices of regulatory, tax, judicial and administrative bodies, including with regards to the interpretation of laws, governmental approvals, permits and licenses;

•water availability and availability of appropriate local water infrastructure, usage and consumption levels, as well as recycling and discharge practices;

•constraints in the supply of electricity as a result of cost increases, reliability of infrastructure or due to extreme weather events, leading to power outages; and

•changes in, or uncertainty about, labor laws and human rights and our ability to ensure compliance across our international supply chains.

We, and the semiconductor industry, operate at a global scale. Our global asset base and market footprint expose us to negative impacts of tariffs and /or trade barriers that may inhibit our ability to place products across regions.

Our global asset base and diversified market footprint expose us to adverse impacts from tariffs, trade restrictions, and protectionist policies. These barriers can limit our ability to efficiently place products across key regions, disrupt established supply chains, increase input costs, and reduce market access particularly in jurisdictions where we operate manufacturing hubs or export our products. These risks may be particularly acute in the semiconductor industry, where cyclical demand patterns and rapid technological changes can amplify economic headwinds.

The institution of trade tariffs globally, including the institution of any sector-specific tariffs, as well as the threat thereof, could negatively impact economic conditions, which could have negative repercussions for our business. In particular, trade protection and national security policies of the U.S. and Chinese governments, including tariffs, trade restrictions, export restrictions and the placing of companies on restricted entity lists, have and may continue to limit or prevent us from transacting business with certain of our Chinese customers or suppliers; limit, prevent or discourage certain of our Chinese customers or suppliers from transacting business with us; or make it more expensive to do so. If disputes were to arise under any of our agreements with other parties conducting business in China, the resolution of such dispute may be subject to the exercise of discretion by the Chinese government, or agencies of the Chinese government, which may have a material adverse effect on our business. In addition, we could face increased competition as a result of China's programs to promote a domestic semiconductor industry and supply chains (such as its 5-year plans, the China Standards 2035 campaign and related large scale

national and local public funding schemes). In the United States, the current administration is imposing and increasing tariffs on imports into the country, and may impose additional tariffs or further increase existing tariffs on imports into the country. Other countries are also imposing or increasing tariffs and may impose or increase existing tariffs or impose other restrictions on imports in response to these measures.

In addition, we may be subject to the imposition of sector-specific tariffs, such as the 100% tariff on imported, foreign-produced semi-conductor chips threatened by the current U.S. administration, or China’s related export controls. Any or all of these measures or restrictions may limit our ability to sell products in certain markets or source components from specific suppliers, potentially disrupting our supply chain and manufacturing capabilities and limiting our ability to service our customer base in a cost-effective manner.

Further, throughout 2025 the current U.S. administration initiated numerous investigations into products and industries under section 232 of the Trade Expansion Act of 1962. For example, in April 2025, the Department of Commerce launched an investigation into the national security impacts of imported semiconductors and semiconductor manufacturing equipment. This investigation may result in additional tariffs and trade restrictions that may adversely impact the semiconductor industry and our business. Similar investigations on other industries or products, including automotive, copper, steel, aluminium, critical minerals and aircraft, may also adversely impact the semiconductor industry and our business.

Changes in trade policy might also provoke retaliatory measures from affected countries, which could limit our ability to conduct business in those markets or decrease the number of customers purchasing our products. Consequently, we may face higher costs for components used in our products, increased manufacturing expenses, currency exchange rate volatility, and elevated prices for our products in foreign markets. Additionally, protectionist policies and regulations could encourage our customers to shift their operations or supply chains to their own countries or others, or require their contractors, subcontractors, and agents to do the same, potentially undermining our current levels of productivity and manufacturing efficiency and increasing manufacturing expenses, and currency exchange challenges.

The semiconductor industry is cyclical and downturns in the semiconductor industry can negatively affect our results of operations and financial condition.

The semiconductor industry is cyclical and has been subject to significant downturns from time to time, as a result of global economic conditions, and industry-specific factors, such as built-in excess capacity, fluctuations in product supply, product obsolescence and changes in end-customer preferences. See “— We, and the semiconductor industry as a whole, have been and may be further impacted by changes in, or uncertainty about, global, regional and local economic, political, legal, regulatory and social environments as well as climate change.”

Downturns are typically characterized by reduction in overall demand, accelerated erosion of selling prices, reduced revenues and high inventory levels, any of which could result in a significant deterioration of our results of operations. Such macro-economic trends typically relate to the semiconductor industry as a whole rather than to the individual semiconductor markets to which we sell our products. To the extent that industry downturns are concurrent with the timing of new increases in production capacity or introduction of new advanced technologies in our industry, the negative effects on our business from such industry downturns may also be more severe. We have experienced revenue volatility and market downturns in the past, and expect to experience them in the future, which could have a material adverse impact on our results of operations and financial condition.

The recent increase in inflation rates in the markets in which we operate may lead us to experience higher costs related to labor, energy, water, transportation, wafer and other raw materials costs from suppliers. Our suppliers may raise their prices, and in the competitive markets in which we operate we may not be able to make corresponding price increases to preserve our gross margins and profitability due to market conditions and competitive dynamics. Additionally, any such increase in prices may not be accepted by our customers.

Epidemics or pandemics may impact the global economy and could also adversely affect our business, financial condition and results of operations.

Epidemics or pandemics may result in authorities imposing, and businesses and individuals implementing, numerous measures to try to contain the disease, including travel bans and restrictions, shelter-in-place and stay-at-home orders, quarantines and social distancing guidelines. This may negatively impact the ability of our suppliers to deliver on their commitments to us, our ability to ship our products to our customers and general consumer demand for our products may be negatively impacted by the pandemic and/or government responses thereto.

In addition, our customers and suppliers may experience disruptions in their operations and supply chains, which could result in delayed, reduced, or cancelled orders or collection risks, and which may adversely affect our results of operations and financial condition.

During an epidemic or pandemic, governments may look to re-direct resources and implement austerity measures in the future to balance public finances, which could result in reduced economic activity. Any resulting economic downturn could reduce overall demand for our products, accelerate the erosion of selling prices, lead to reduced revenues and higher inventory levels, any of which could result in a significant deterioration of our results of operations and financial condition.

An epidemic or pandemic may also lead to increased disruption and volatility in capital markets and credit markets. Unanticipated consequences of an epidemic or pandemic and resulting economic uncertainty could adversely affect our liquidity and capital resources in the future.

We may not be able to match our production capacity to demand.

As a result of the cyclicality and volatility of the semiconductor industry, it is difficult to predict future developments in the markets we serve and, in turn, to estimate requirements for production capacity. If our markets, start-up or ramp-ups in manufacturing operations are not efficiently executed, major customers or certain product designs or technologies do not perform as well as we have anticipated, demand is impacted by factors outside of our or our customers’ control, or if there is otherwise any future excess capacity by us or other semiconductor manufacturers, we risk unused capacity charges, price erosion, write-offs of inventories and losses on products that may adversely impact our operating results, and we could be required to undertake restructuring and transformation measures that may involve significant charges and losses to our earnings.

Furthermore, during certain periods, the global supply of semiconductor industry fabrication capacity may not be sufficient to meet the demand for semiconductor products. We may also experience increased demand in certain market segments and product technologies and any future shortage of our capacity and the capacity of our sub-contractors may lead to an increase in the lead times of our delivery to customers, us being required to enter into agreements with our suppliers with onerous terms such as take-or-pay arrangements, or us being unable to service some of our customers, which may detrimentally affect our customer relationships and result in liability claims. Further, as a result of this supply imbalance, the industry in general may at times experience a high level of profitability and gross margins which may not be sustainable over the long-term.

Competition in the semiconductor industry is intense, and we may not be able to compete successfully if our product design technologies, process technologies and products do not meet market requirements. Furthermore, the competitive environment of the industry has resulted, and is expected to continue to result, in vertical and horizontal consolidation among our suppliers, competitors and customers, which may lead to erosion of our market share, impact our ability to compete and require us to restructure our operations.

We compete in different product lines to various degrees on certain characteristics, for example, price, technical performance, product features, product design, product availability, process technology,

manufacturing capabilities and sales and technical support. Given the intense competition in the semiconductor industry, if our products do not meet market requirements based on any of these characteristics, our business, financial condition and results of operations could be materially adversely affected. Our competitors may, among others, have a stronger presence in key markets and geographic regions, greater name recognition, larger customer bases, greater government support and greater financial, R&D, sales and marketing, manufacturing, distribution and technical resources than us. These competitors may be able to adapt more quickly to changes in the business environment, to new or emerging technologies and to changes in customer requirements.

Our product portfolio and roadmap evolution may additionally subject us to increased pressure from competitors. Variations in customer consumption patterns and product development trends, as well as any misalignment between our product development roadmap and that of our competitors, may impact our projections for areas particularly sensitive to market shifts.

The semiconductor industry is intensely competitive and characterized by the high costs associated with developing marketable products and manufacturing technologies as well as high levels of investment in production capabilities. As a result, the semiconductor industry has experienced, and is expected to continue to experience, significant vertical and horizontal consolidation among our suppliers, competitors and customers. Market consolidation initiatives, planned restructurings, and any other such actions in the semiconductor industry may be subject to stricter regulations in the jurisdictions in which we operate, which could erode our market share, negatively impact our ability to compete and require us to increase our R&D effort, engage in mergers and acquisitions and/or restructure our operations.

Risks Related to Our Operations

Our high fixed costs could adversely impact our results.

Our operations are characterized by high fixed or other costs which are difficult to reduce, including costs related to manufacturing (particularly as we operate our own manufacturing facilities) and the employment of our highly skilled workforce. When demand for our products decreases, competition increases or we fail to forecast demand accurately, we may be driven to reduce prices and we may not always be able to reduce our total costs in line with resulting revenue declines. As a result, the costs associated with our operations may not be fully absorbed, leading to unused capacity charges, higher average unit costs and lower gross margins, adversely impacting our results.

Our capital needs are high compared to those competitors who do not manufacture their own products and we may need additional funding in the coming years to finance our investments, to purchase other companies or technologies developed by third parties or to refinance our maturing indebtedness.

As a result of our choice to maintain control of a large portion of our manufacturing technologies and capabilities, we may require significant capital expenditure to maintain or upgrade our facilities if our facilities become inadequate in terms of capacity, flexibility and location. We monitor our capital expenditures taking into consideration factors such as trends in the semiconductor market, customer requirements and capacity utilization. These capital expenditures may increase in the future if we decide to upgrade or expand the capacity of our manufacturing facilities, purchase or build new facilities or increase investments supporting key strategic initiatives. For instance, we may be unable to successfully develop, maintain and operate large infrastructure projects. Such increased capital expenditures associated with large infrastructure projects and strategic initiatives might not achieve profitability or we may be unable to utilize infrastructure projects to full capacity. There can also be no assurance that future market demand and products required by our customers will meet our expectations. We also may need to invest in other companies, in IP and/or in technology developed either by us or by third parties to maintain or improve our position in the market or to reinforce our existing business. Failure to invest appropriately and in a timely manner or to successfully integrate any recent or future business acquisitions may prevent

us from achieving the anticipated benefits and could have a material adverse effect on our business and results of operations.

The foregoing may require us to secure additional financing, including through the issuance of debt, equity or both. The timing and the size of any new share or bond offering would depend upon market conditions as well as a variety of other factors. In addition, the capital markets may from time to time offer terms of financing that are particularly favorable. We cannot exclude that we may access the capital markets opportunistically to take advantage of market conditions. Any such transaction or any announcement concerning such a transaction could materially impact the market price of our common shares. If we are unable to access capital on acceptable terms, this may adversely affect our business and results of operations.

Our operating results depend on our ability to obtain quality supplies on commercially reasonable terms. As we depend on a limited number of suppliers for materials, equipment and technology, we may experience supply disruptions if suppliers interrupt supply, increase prices or experience material adverse changes in their financial condition.

Our ability to meet our customers’ demand to manufacture our products depends upon obtaining adequate supplies of quality materials on a timely basis and on commercially reasonable terms. Certain materials are available from a limited number of suppliers or only from a limited number of suppliers in a particular region. We purchase certain materials whose prices on the world markets have fluctuated significantly in the past and may fluctuate significantly in the future. Although supplies for most of the materials we currently use are adequate, shortages could occur in various essential materials due to interruption of supply or increased demand in the industry. For instance, geopolitical conflicts (such as the ongoing armed conflict in the Middle-East) could disrupt supply chains and cause shortages of certain semiconductor components and corresponding delays in shipments. Any such shortage may impact different geographical markets disproportionately, leading to shortages or unavailability of supplies in specific areas and higher transportation costs. In addition, the costs of certain materials may increase due to inflationary rates and market pressures and we may not be able to pass on such cost increases to our customers.

We also purchase semiconductor manufacturing equipment and third-party licensed technology from a limited number of suppliers and providers and, because such equipment and technology are complex, it is difficult to replace any one supplier or provider with another or to substitute one piece of equipment or type of technology for another. In addition, suppliers and providers may extend lead times, limit our supply, increase prices or change contractual terms related to certain manufacturing equipment and third-party licensed technology, any of which could adversely affect our results. Furthermore, suppliers and technology providers tend to focus their investments on providing the most technologically advanced equipment, materials and technology and may not be able to address our requirements for equipment, materials or technology of older generations. Although we work closely with our suppliers and providers to avoid such shortages, there can be no assurance that we will not encounter these problems in the future.

Consolidation among our suppliers or vertical integration among our competitors may limit our ability to obtain sufficient quantities of materials, equipment and/or technology on commercially reasonable terms and restrict the terms under which we engage in mergers and acquisitions. In certain instances, we may be required to enter into agreements with our suppliers with onerous terms, such as take-or-pay arrangements. If we are unable to obtain supplies of materials, equipment or technology in a timely manner or at all, or if such materials, equipment or technology prove inadequate or too costly, our results of operations could be adversely affected.

Our financial results can be affected by fluctuations in exchange rates, principally in the value of the U.S. dollar.

The U.S. dollar is the currency of the primary economic environment in which we operate, and the currency we use in our consolidated financial statements. A large part of our transactions are denominated in U.S. dollars, and revenues from external sales in U.S. dollars largely exceed revenues in any other currency. However, we incur a limited portion of our revenue and a significantly higher portion of our costs in currencies other than the U.S. dollar. A significant variation of the value of the U.S. dollar against the principal currencies that may have a material impact on us (primarily the Euro) could result in a favorable impact, net of hedging, on our net income in the case of an appreciation of the U.S. dollar, or in a negative impact, net of hedging, on our net income if the U.S. dollar depreciates relative to the Euro or certain other currencies. Any fluctuation in currency exchange rates could affect, and has in the past affected, our results of operations.

In order to reduce the exposure of our financial results to the fluctuations in exchange rates, our principal strategy has been to balance as much as possible the proportion of sales to our customers denominated in U.S. dollars with the amount of purchases from our suppliers denominated in U.S. dollars, thereby reducing the potential exchange rate impact of certain variable costs relative to revenues. In order to further reduce our exposure to U.S. dollar exchange rate fluctuations, we have hedged certain line items on our consolidated statements of income, in particular with respect to a portion of the cost of sales, the majority of the R&D expenses and certain selling, general & administrative (“SG&A”) expenses located in the Euro zone. We may also hedge certain manufacturing costs, included within the cost of sales, denominated in Singapore dollars. There can be no assurance that our hedging transactions will prevent us from incurring higher Euro-denominated manufacturing costs and/or operating expenses when translated into our U.S. dollar-based accounts.

Our operating results may vary significantly from quarter to quarter and annually and may also differ significantly from our expectations or guidance.

Our operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability or lead to significant variability of our operating results from one period to the next. These factors include changes in demand from our key customers, capital requirements, inventory management, availability of funding and competition, new product developments, start of adoption of our new products by customers, technological changes, manufacturing or supplier issues and changes to effective tax rates. In addition, in periods of industry overcapacity or when our key customers encounter difficulties in their end-markets or product ramps, orders are more exposed to cancellations, reductions, price renegotiation or postponements, which in turn reduce our ability to forecast the next quarter or full year production levels, revenues and margins. Although backlog may provide an indication of future orders, quantities actually purchased by customers, as well as prices, are subject to variations between booking and delivery times and, in some cases, subject to cancellation due to changes in customer needs or industry conditions, as well as seasonality, among other things. As a result, we may not meet our financial targets, which could in turn have an impact on our reputation or brand. For these reasons and others that we may not yet have identified, our revenues and operating results may differ materially from our expectations or guidance as visibility is reduced.

If our external silicon foundries or back-end subcontractors fail to perform, this could adversely affect our business prospects, financial condition and results of operations.

We currently use external silicon foundries and back-end subcontractors for a portion of our manufacturing activities. Any limitation on the ability of our external silicon foundries and back-end subcontractors to satisfy our demand may be detrimental to our results of operations and ability to satisfy the demand of our customers. Likewise, if we are unable to meet our commitments to silicon foundries and back-end subcontractors, our results of operations could suffer. Prices for these services also vary depending on capacity utilization rates at our external silicon foundries and back-end subcontractors,

quantities demanded and product and process technology. Such outsourcing costs can vary materially and, in cases of industry shortages, can increase significantly, negatively impacting our business prospects, financial condition and results of operations.

Our manufacturing processes are highly complex, costly and potentially vulnerable to impurities, disruptions or inefficient implementation of production changes or interruptions that can significantly increase our costs and delay product shipments to our customers.

Our manufacturing processes are highly complex, require advanced and increasingly costly equipment and are continuously modified or maintained in an effort to improve yields and product performance and lower the cost of production.

Furthermore, impurities or other difficulties in the manufacturing process can lower yields, interrupt production or result in scrap. As system complexity and production changes have increased and sub-micron technology has become more advanced, manufacturing tolerances have been reduced and requirements for precision have become more demanding. We have from time to time experienced bottlenecks and production difficulties that have caused delivery delays and quality control problems. There can be no assurance that we will not experience bottlenecks, production, transition or other related difficulties in the future.

In addition, we are exposed to risks related to interruptions of our manufacturing processes. If any of our property or equipment is damaged or otherwise rendered unusable or inoperable due to accident, cyberattack or otherwise, this could result in interruptions which could have a material adverse effect on our business, financial condition and results of operations.

We may experience quality problems from time to time that can result in decreased sales and operating margin and product liability or warranty claims.

We sell complex products that may not in each case comply with specifications or customer requirements, or which may contain design or manufacturing defects that could cause personal injury, property damage or security risks that could be exploited by unauthorized third parties hacking, corrupting or otherwise obtaining access to our products, including to the software loaded thereon by us, our suppliers or our customers. Although our general practice is to contractually limit our liability to the repair, replacement or refund of defective products, we occasionally agree to contractual terms with key customers in which we provide extended warranties and, accordingly, we may face product liability, warranty, delivery failure, and/or other claims relating to our products that could result in significant expenses relating to compensation payments, product recalls or other actions related to such extended warranties and/or to maintain good customer relationships, which could result in decreased sales and operating margin and other material adverse effects on our business. Costs or payments we may make in connection with warranty and other claims or product recalls may equally adversely affect our results of operations.

There can be no assurance that we will be successful in maintaining our relationships with customers with whom we incur quality problems. Furthermore, if litigation occurs we could incur significant costs and liabilities to defend ourselves against any such claims. The industry has experienced a rise in premiums and deductibles with regards to insurance policies. These may continue to increase and insurance coverage may also correspondingly decrease. If litigation occurs and damages are awarded against us, there can be no assurance that our insurance policies will be available or adequate to protect us against such claims.

Disruptions in our relationships with any one of our key customers or distributors, and/or material changes in their strategy or financial condition or business prospects, could adversely affect our results of operations.

A substantial portion of our sales is derived from a limited number of customers and distributors. The level of sales booked by our customers and distributors varies year to year and there can be no assurance that our customers or distributors will continue to book the same level of sales with us that they have in the past, will continue to succeed in the markets they serve and will not purchase competing products over our products. Many of our key customers and distributors operate in cyclical businesses that are also highly competitive, and their own market positions may vary considerably.

In recent years, some of our customers have vertically integrated their businesses. Such vertical integrations may impact our business. Our relationships with the newly formed entities could be either reinforced or jeopardized by the integration. If we are unable to maintain or increase our market share with our key customers or distributors, or if they were to increase product returns or fail to meet payment obligations, our results of operations could be materially adversely affected.

In addition, certain of our products are customized to our customers’ specifications. If customers do not purchase products made specifically for them, we may not be able to recover a cancellation fee from our customers or resell such products to other customers. In addition, the occurrence of epidemic or pandemic outbreaks could affect our customers. The geographic spread of epidemics or pandemics may be difficult to predict and adverse public health impacts on our customers could negatively affect our results.

We may experience delays in delivering our product and technology roadmaps as well as transformation initiatives.

Our industry adapts to technological advancements and it is likely that new products, equipment, processes and service methods, including transformation initiatives related to digitalization, are in the process of being implemented. Any failure by us to manage our data governance processes could undermine our digitalization initiatives, and any failure by us to react to changes or advances in existing technologies and processes as we develop and invest in our product, technology and transformation roadmaps could materially delay the introduction of new solutions. If we are not able to execute on these roadmaps, including our digitalization strategies, on a timely basis or at an acceptable cost this could result in loss of competitiveness of our solutions, decreased revenue and a loss of market share.

Our computer systems, including hardware, software, information and cloud-based initiatives, are subject to attempted security breaches and other cybersecurity threats, which, if successful, could adversely impact our business.

We have, from time to time, detected and experienced attempts by others to gain unauthorized access to our computer systems and networks. The reliability and security of our information technology infrastructure and software, including our AI technology, and our ability to expand and continually update technologies, including to transition to cloud-based technologies, in response to our changing needs is critical to our business. In the current environment, there are numerous and evolving risks to cybersecurity, including criminal hackers, state-sponsored intrusions, terrorism, industrial espionage, employee malfeasance, vandalism and human or technological error. Computer hackers and others routinely attempt to breach the security of technology products, services, and systems, and those of our customers, suppliers, partners and providers of third-party licensed technology, and some of those attempts may be successful.

The attempts to breach our systems, including our cloud-based systems, and to gain unauthorized access to our information technology systems are becoming increasingly more sophisticated, are often well-financed, in some cases supported by state actors, and are designed to not only track, but also to evade detection. These attempts may include covertly introducing malware into our computers, including those in our manufacturing operations, and impersonating unauthorized users, among others. For instance, employees and former employees, in particular former employees who become employees of our competitors or customers, may misappropriate, use, publish or provide to our competitors or customers

our IP and/or proprietary or confidential business information. Also, third parties may attempt to register domain names similar to our brands or website, which could cause confusion and divert online customers away from our products.

Since the techniques used by cyber attackers change frequently and are often not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. Our use of AI technology may also increase vulnerability to cybersecurity risks, including through unauthorized use or misuse of AI tools and bad inputs or logic or the introduction of malicious code incorporated into AI generated code. AI and machine learning also may be used for certain cybersecurity attacks, improving or expanding the existing capabilities of threat actors in manners we cannot predict at this time, resulting in greater risks of security incidents and breaches.

Such security incidents and breaches could result in, for example, unauthorized access to, disclosure, modification, misuse, loss, or destruction of our, our customer, or other third-party data or systems, theft of our trade secrets and other sensitive or confidential data, including personal information and IP, system disruptions, and denial of service. In the event of such breaches, we, our customers or other third parties could be exposed to potential liability, litigation, and regulatory action, as well as the loss of existing or potential customers, damage to our reputation, and other financial loss and such breaches could also result in losing existing or potential customers in connection with any actual or perceived security vulnerabilities in our systems. In addition, the cost and operational consequences of responding to breaches and implementing remediation measures could be significant. As these threats continue to develop and grow, we have been adapting and strengthening our security measures.

As a result of work-from-home policies that we have undertaken, there has been additional reliance placed on our IT systems and resources. The resulting reliance on these resources, and the added need to communicate by electronic means, could increase our risk of cybersecurity incidents.

Geopolitical instability has been associated with an increase in cybersecurity incidents. This may result in a higher likelihood that we may experience direct or collateral consequences from cybersecurity conflicts between nation-states or other politically motivated actors targeting critical technology infrastructure.

U.S. and foreign regulators have increased their focus on cybersecurity vulnerabilities and risks, and customers and service providers are increasingly demanding more rigorous contractual certification and audit provisions regarding cybersecurity and data governance. This may result in an increase of our overall compliance burden due to increasingly onerous obligations and leading to significant expense. There may also be shorter deadlines in which to notify the authorities of data breaches and ever-increasing fines and penalties for businesses that fail to respond swiftly and appropriately to cyberattacks. Any failure to comply could also result in proceedings against us by regulatory authorities or other third parties.

We continue to update and execute our security plans to protect data and infrastructure and to raise security awareness among those having access to our systems. However, these security measures cannot provide absolute security and there can be no assurance that our employee training, operational, and other technical security measures or other controls will detect, prevent or remediate security or data breaches in a timely manner or otherwise prevent unauthorized access to, damage to, or interruption of our systems and operations.

We regularly evaluate our IT systems and business continuity plan to make enhancements and periodically implement new or upgraded systems, including the transition and migration of our data systems to cloud-based platforms and critical system migration. Any delay in the implementation of, or disruption in the transition to different systems could adversely affect our ability to record and report financial and management information on a timely and accurate basis and could impact our operations and financial position. In addition, a miscalculation of the level of investment needed to ensure our technology solutions are current and up-to-date as technology advances and evolves could result in disruptions in our business should the software, hardware or maintenance of such items become out-of-date or obsolete and the costs of upgrading our cybersecurity systems and remediating damages could be substantial.

We may also be adversely affected by security breaches related to our equipment providers and providers of IT services or third-party licensed technology. As a global enterprise, we could also be impacted by existing and proposed laws and regulations, as well as government policies and practices related to cybersecurity, data privacy and data protection. Additionally, cyberattacks or other catastrophic events resulting in disruptions to or failures in power, information technology, communication systems or other critical infrastructure could result in interruptions or delays to us, our customers, or other third-party operations or services, financial loss, potential liability, damage to our reputation and could also affect our relationships with our customers, suppliers and partners. Refer to Section 3.3.1.3. (Illustrative risk management measures - Cyber security).

We may not be able to integrate or optimize the use of new technologies in a timely manner, which may place us at a competitive disadvantage against other industry players.

The semiconductor industry is highly competitive and characterized by constant and rapid technological change, short product lifecycles, significant price erosion and evolving standards. Accordingly, our financial performance and future prospects depend to a significant extent on our ability to develop and maximize the opportunities offered by new technologies available to our industry, such as AI or quantum.

At ST, AI is primarily focused on machine learning and deep learning technology. We leverage these technologies to interpret complex events, classify and segment data, and enable automated data flows. Such usages include automatic defect classification across front-end and back-end manufacturing lines, physical layout placement optimization, yield enhancements and automatic classification of expense notes, among others.

ST additionally relies on generative AI for content generation, conversational user experience and assisted reasoning. Some usages include AI-driven assistance for generating design rules checks in technology development, software development copilots that aid developers in code generation and maintenance, and knowledge-based assistants designed to improve efficiency by streamlining content retrieval, summarization, and content generation.

We have invested significant resources to the integration of AI capabilities to our operations. Should we be unable to successfully leverage the opportunities presented by AI and any other such new technological advances or should our governance processes prove to be insufficient to support the AI opportunities available to us, benefits of the implementation of any new such technologies may not materialize.

In addition, meeting evolving industry requirements, including the increasing use of AI and machine learning technologies, and introducing new products to the market in a timely manner and at prices that are acceptable to our customers are significant factors in determining our competitiveness and success. AI and machine learning are still in early stages, and the introduction and incorporation of AI technologies may result in unintended consequences or new or expanded risks and liabilities, including (i) adverse impact from deficient, inaccurate, or biased AI recommendations, (ii) AI technologies the company develops and adopts becoming obsolete earlier than planned, leading to there being no assurance that the company will realize the desired or anticipated benefits, (iii) use of AI applications increasing the risk of cybersecurity incidents, such as through unintended or inadvertent transmission of proprietary or sensitive information, or (iv) any laws, regulations or industry standards adopted in response to the emergence of AI, such as the EU's AI Act, becoming burdensome.

We may be subject to theft, loss, or misuse of personal data about our employees, customers, or other third parties, which could increase our expenses, damage our reputation, or result in legal or regulatory proceedings.

We have, from time to time, detected and experienced attempts by others to gain unauthorized access to our computer systems and networks, may experience successful breaches of our computer systems in the future, and may be adversely affected by security breaches related to our equipment providers and

providers of IT services or third-party licensed technology. See "— Our computer systems, including hardware, software, information and cloud-based initiatives, are subject to attempted security breaches and other cybersecurity threats, which, if successful, could adversely impact our business." The theft, loss, or misuse of personal data processed by us or for us, as a result of any such breaches or otherwise, could result in significantly increased security costs or potential liability, litigation and regulatory action, as well as the loss of existing or potential customers.

Further, with increasing digitalization, data privacy-related legislations are rapidly evolving around the globe which may have a negative impact on our business if interpreted or implemented in a manner that is inconsistent from country to country and inconsistent with the current policies and practices of our customers or business partners. We may also have to change the manner in which we contract with our business partners, store and transfer information and otherwise conduct our business, which could increase our costs and reduce our revenues.

Our business is dependent in large part on continued growth in the industries and segments into which our products are sold and on our ability to retain existing customers and attract new ones. A market decline in any of these industries, our inability to retain and attract customers, or customer demand for our products which differs from our projections, could have a material adverse effect on our results of operations.

The demand for our products depends significantly on the demand for our customers’ end products. Growth of demand in the industries and segments into which our products are sold fluctuates significantly and is driven by a variety of factors, including consumer spending, consumer preferences, the development and acceptance of new technologies and prevailing economic conditions. Changes in our customers’ markets and in our customers’ respective shares in such markets could result in slower growth and a decline in demand for our products. In addition, if projected industry growth rates do not materialize as forecasted, our spending on process and product development ahead of market acceptance could have a material adverse effect on our business, financial condition and results of operations.

Our business is dependent upon our ability to retain existing customers. In 2025 our largest customer, Apple, accounted for 17.7% of our total revenues. While we do not believe to be dependent on any one customer or group of customers, the loss of key customers or important sockets at key customers could have an adverse effect on our results of operations and financial condition.

Our existing customers’ product strategy may change from time to time and/or product specifications may change on short-time product life cycles and we have no certainty that our business, financial position and results of operations will not be affected. Our business is also dependent upon our ability to attract new customers. There can be no assurance that we will be successful in attracting and retaining new customers, or in adequately projecting customer demand for our products. Our failure to do so could materially adversely affect our business, financial condition and results of operations.

Market dynamics have driven, and continue to drive us, to a strategic repositioning.

In recent years, we have undertaken several initiatives to reposition our business. Our strategies to improve our results of operations and financial condition have led us, and may in the future lead us, to acquire businesses that we believe to be complementary to our own, to divest ourselves of or wind down activities that we believe do not serve our longer term business plans, or to enter into partnerships or joint ventures to enter into or strengthen our position in certain markets and increase our scale of operations. Our potential acquisition strategies depend in part on our ability to identify suitable acquisition targets, finance their acquisition, obtain approval by our shareholders and obtain required regulatory and other approvals. Our potential divestiture strategies depend in part on our ability to compete and to identify the activities in which we should no longer engage, obtain the relevant approvals pursuant to our governance process and then determine and execute appropriate methods to divest of them. Our actual or potential

partnerships and joint venture strategies depend in part on our ability to execute sales and operations plans alongside our partner or joint venture.

We are constantly monitoring our product portfolio and cannot exclude that additional steps in this repositioning process may be required. Furthermore, we cannot assure that any strategic repositioning of our business, including executed and possible future acquisitions, dispositions or partnerships and joint ventures, will be successful and will not result in impairment, restructuring charges and other related closure costs. The realization of our identified opportunities, including sustainability opportunities, may result in exposure to new risks. Should we not be able to anticipate these risks, or should the anticipated benefits not be realized from these opportunities, our business and strategy could be adversely affected.

Acquisitions, divestitures, partnerships and joint ventures involve a number of risks that could adversely affect our operating results and financial condition, including, in respect of acquisitions and divestitures, the inability for us to successfully integrate businesses or teams that we acquire with our culture and strategies on a timely basis or at all, and the potential requirement for us to record charges related to the goodwill or other long-term assets associated with the acquired businesses. There can be no assurance that we will be able to achieve the full scope of the benefits we expect from a particular acquisition, divestiture, partnership, joint venture or investment. Our business, financial condition and results of operations may suffer if we fail to coordinate our resources effectively to manage both our existing businesses and any acquired businesses. In addition, the financing of future acquisitions, divestitures, partnerships or joint ventures may negatively impact our financial position, including our ability to pay a dividend and/or repurchase our shares, and our credit rating and we could be required to raise additional funding.

We do not, and in the future may not, have a majority shareholding in all our joint ventures, and may have limited opportunity to intervene in the decision-making process of our joint ventures. The objectives of our associates and joint venture partners, their ability to meet their financial and/or contractual obligations, compliance with legal requirements, compliance to safety, health and environmental requirements and standards, behavior and ethical standards may result in disputes, litigation, sanctions and/or suspension of licenses which in turn may have a material adverse effect on our business, operating results, reputation, cash flows and financial condition, and may constrain the achievement of our objectives.

Other risks associated with acquisitions include the assumption of potential liabilities, disclosed or undisclosed, associated with the business acquired, which liabilities may exceed the amount of indemnification available from the seller, potential inaccuracies in the financials of the business acquired, and our ability to retain customers of an acquired entity, its business or industrialize an acquired process or technology. Identified risks associated with divestitures include loss of activities and technologies that may have complemented our remaining businesses or operations and loss of important services provided by key employees that are assigned to divested activities.

We depend on collaboration with other semiconductor industry companies, research organizations, universities, customers and suppliers to further our R&D efforts, and our business and prospects could be materially adversely affected by the failure or termination of such alliances.

Our success depends on our ability to introduce innovative new products and technologies to the marketplace on a timely basis. In light of the high levels of investment required for R&D activities, we depend in certain instances on collaborations with other semiconductor industry companies, research organizations, universities, customers and suppliers to develop or access new technologies.

Such collaboration provides us with a number of important benefits, including the sharing of costs, reductions in our own capital requirements, acquisitions of technical know-how and access to additional production capacities. However, there can be no assurance that our collaboration efforts will be successful and allow us to develop and access new technologies in due time, in a cost-effective manner and/or to meet customer demands. If a particular collaboration terminates before our intended goals are accomplished we may incur additional unforeseen costs, and our business and prospects could be

adversely affected. Furthermore, if we are unable to develop or otherwise access new technologies, whether independently or in collaboration with another industry participant, we may fail to keep pace with the rapid technology advances in the semiconductor industry, our participation in the overall semiconductor industry may decrease and we may also lose market share.

We depend on patents to protect our rights to our technology and may face claims of infringing the IP rights of others.

We depend on patents and other IP rights to protect our products and our manufacturing processes against misappropriation by others. The process of seeking patent protection can be long and expensive, and there can be no assurance that we will receive patents from currently pending or future applications. Even if patents are issued, they may not be of sufficient scope or strength to provide meaningful protection or any commercial advantage. In addition, effective IP protection may be unavailable or limited in some countries. Our ability to enforce one or more of our patents could be adversely affected by changes in patent laws, laws in certain foreign jurisdictions that may not effectively protect our IP rights or by ineffective enforcement of laws in such jurisdictions. Competitors may also develop technologies that are protected by patents and other IP and therefore either be unavailable to us or be made available to us subject to adverse terms and conditions. We have in the past used our patent portfolio to negotiate broad patent cross-licenses with many of our competitors enabling us to design, manufacture and sell semiconductor products, without concern of infringing patents held by such competitors. We may not in the future be able to obtain such licenses or other rights to protect necessary IP on favorable terms for the conduct of our business, and such failure may adversely impact our results of operations. Such cross-license agreements expire from time to time and there is no assurance that we can or we will extend them.

We have from time to time received, and may in the future receive, communications alleging possible infringement of third-party patents and other IP rights. Some of those claims are made by so-called non-practicing entities against which we are unable to assert our own patent portfolio to lever licensing terms and conditions. Competitors with whom we do not have patent cross-license agreements may also develop technologies that are protected by patents and other IP rights and which may be unavailable to us or only made available on unfavorable terms and conditions. We may therefore become involved in costly litigation brought against us regarding patents and other IP rights. IP litigation may also involve our customers who in turn may seek indemnification from us should we not prevail and/or who may decide to curtail their orders for those of our products over which claims have been asserted. Such lawsuits may therefore have a material adverse effect on our business. We may be forced to stop producing substantially all or some of our products or to license the underlying technology upon economically unfavorable terms and conditions or we may be required to pay damages for the prior use of third-party IP and/or face an injunction.

The outcome of IP litigation is inherently uncertain and may divert the efforts and attention of our management and other specialized technical personnel. Such litigation can result in significant costs and, if not resolved in our favor, could materially and adversely affect our business, financial condition and results of operations.

We operate in many jurisdictions with highly complex and varied tax regimes. Changes in tax rules, new or revised legislation or the outcome of tax assessments and audits could cause a material adverse effect on our results.

We operate in many jurisdictions with highly complex and varied tax regimes. Changes in tax rules, new or revised legislation or the outcome of tax assessments and audits could have a material adverse effect on our results.

In 2021, the Organization for Economic Cooperation and Development ("OECD") and the G20 Inclusive Framework on base erosion and profit shifting ("BEPS") agreed to a two-pillar solution to address the tax

challenges arising from the digitalization of the economy. Pillar I is a set of rules revisiting tax allocation rules in a changed economy. The intention is that a portion of a multinationals' residual profit is taxed in the jurisdiction where revenue is sourced.

Pillar II enforces a global minimum corporate income tax at an effective rate of 15% for large multinationals. On December 20, 2021 the OECD published the Global Anti-Base Erosion Model Rules ("GloBe Rules") for Pillar II. On December 22, 2021, the European Commission published a legislative proposal for Pillar II (the "EU Pillar II Directive" or "Pillar II").

On December 15, 2022, the Council formally adopted the EU Pillar II Directive. The EU Pillar II Directive aims at consistently implementing among all 27 member states the GloBe Rules. The majority of the EU Member States transposed the EU Pillar II Directive into their national laws and started applying the Pillar II measures as from the fiscal years beginning on or after December 31, 2023. The Netherlands transposed the Pillar II into its national legislation with effect from December 31, 2023 pursuant to the Dutch Minimum Tax Act 2024 (Wet minimumbelasting 2024). Pillar II legislation has also been implemented in countries outside of the EU with an impact in certain jurisdictions where the Group operates. We are continuously monitoring the Pillar II legislation and related guidance, which are still evolving and may have an impact on our global Pillar II tax charge in future periods.

The tax impact of the Pillar I rules is being monitored to determine the potential effect on our results and to ensure compliance when the legislation is effective

Our tax rate is variable and depends on changes in the level of operating results within various local jurisdictions and on changes in the applicable taxation rates of these jurisdictions, as well as changes in estimated tax provisions due to new events. We currently receive certain tax benefits or benefit from net operating losses cumulated in prior years in some countries, and these benefits may not be available in the future due to changes in the local jurisdictions or credits on net operating losses being no longer available due to either full utilization or expiration of the statute of limitations in such jurisdictions. As a result, our effective tax rate could increase and/or our benefits from carrying forward net operating losses could affect our deferred tax assets in certain countries in the coming years. In addition, the acquisition or divestiture of businesses in certain jurisdictions could materially affect our effective tax rate.

We evaluate our deferred tax asset position and the need for a valuation allowance on a regular basis. The ultimate realization of deferred tax assets is dependent upon, among other things, our ability to generate future taxable income that is sufficient to utilize in certain jurisdictions loss carry-forwards or tax credits before their expiration. The recorded amount of total deferred tax assets could be reduced, which could have a material adverse effect on our results of operations and financial position, if our estimates of projected future taxable income and benefits from available tax strategies are reduced as a result of a change in business condition or in management’s plans or due to other factors, such as changes in tax laws and regulations.

We are subject to the possibility of loss contingencies arising out of tax claims, assessment of uncertain tax positions and provisions for specifically identified income tax exposures. We are also subject to tax audits in certain jurisdictions. There can be no assurance that we will be successful in resolving potential tax claims that result from these audits, which could result in material adjustments in our tax positions. We record provisions on the basis of the best current understanding; however, we could be required to record additional provisions in future periods for amounts that cannot currently be assessed. Our failure to do so and/or the need to increase our provisions for such claims could have a material adverse effect on our results of operations and our financial position.

Our operating results can vary significantly due to impairment of goodwill, other intangible assets and equity investments booked pursuant to acquisitions and the timeframe required to foster and realize synergies thereof, joint venture agreements and the purchase of technologies and licenses from third parties, as well as to impairment of tangible assets due to changes in the business environment. Because the market for our products is characterized by rapidly changing technologies, significant changes in the semiconductor industry, and the potential failure of our business initiatives, our future cash flows may not

support the value of goodwill, tangible assets and other intangibles registered in our consolidated balance sheets.

We receive public funding, and a reduction in the amount available to us or demands for repayment could increase our costs and impact our results of operations.

We have in the past obtained public funding, primarily to support our proprietary R&D for technology investments and investments in cooperative R&D ventures, and expect to obtain public funding in the future, mainly from EU member states (including France, Italy and Malta) as well as from China. The public funding we receive is subject to periodic review by the relevant authorities and there can be no assurance that we will continue to benefit from such programs at current levels or that sufficient alternative funding will be available if we lose such support. If any of the public funding programs we participate in are curtailed or discontinued and we do not reduce the relevant R&D or other costs, this could have a material adverse effect on our business. Furthermore, to receive public funding we enter into agreements which require compliance with extensive regulatory requirements and set forth certain conditions relating to the funded programs. If we fail to meet the regulatory requirements or applicable conditions, we may, under certain circumstances, be required to refund previously received amounts, which could have a material adverse effect on our results of operations. If there are changes in the public funding we receive this could increase the net costs for us to, amongst others, continue investing in R&D at current levels and could result in a material adverse effect on our results of operations.

A change in the landscape in public funding may also affect our business. For example, the European Chips Act which entered into force on September 21, 2023, and is designed to bolster Europe’s competitiveness and resilience in semiconductor technologies and applications and any similar proposals in other regions, may provide public funding towards manufacturing activities of semiconductors. It is yet to be seen whether this would impact the amount of public funding currently available to us for our R&D or other investments and ventures, but any reduction in said funding will result in a material adverse effect on our results of operations. Further, this may result in new or existing competitors benefiting from such funding and could also have an impact on the competitive landscape in our industry.

Some of our production processes and materials are environmentally sensitive, which could expose us to liability and increase our costs due to environmental, health and safety laws and regulations or because of damage to the environment.

We are subject to various laws and regulations, as well as increasing focus from our stakeholders regarding environmental, health and safety matters, including the use, storage, discharge and disposal of chemicals, gases and other hazardous substances used in our operations. Addressing such focus from stakeholders, as well as compliance with such laws and regulations could adversely affect our manufacturing costs or product sales by requiring us to acquire costly equipment, materials or greenhouse gas allowances, or to incur other significant expenses in adapting our manufacturing processes or waste and emission disposal processes. In addition, we are working towards transitioning into an increasingly circular economy model through which we aim to continue to reduce our waste, and increase the use of recycled raw materials in our manufacturing processes. Failure to successfully implement such a model, or a reduction in stakeholder interest in circular economy models, may result in increased costs and stakeholder dissatisfaction.

Separately, several jurisdictions have recently sought to restrict the use of certain substances found in process chemicals, parts, components and other materials used in semiconductor manufacturing and which have limited technically and commercially feasible alternatives. Any such restriction in our ability to access materials necessary for the manufacturing of our products may adversely affect our results of operations. Furthermore, environmental claims or our failure to comply with present or future regulations could result in the assessment of damages or imposition of fines against us, suspension of production or a cessation of operations. Failure by us to control the use of, or adequately restrict the discharge of, chemicals or hazardous substances could subject us to future liabilities.

Climate change, increased focus on social impact, and related sustainability regulations and initiatives, including our commitment to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027, could place additional burden on us and our operations.

As climate change issues become more pronounced, we may correspondingly face increased regulation and also expectations from our stakeholders to take actions beyond existing regulatory requirements to minimize our impact on the environment and mitigate climate change related effects.

The semiconductor manufacturing process has historically contributed to direct greenhouse gas emissions by utilizing perfluorocarbons, which may lead to new or increased regulation of such compounds. In order to address such regulation, we may be required to adapt our production processes or purchase additional equipment or carbon offsets, leading to increased costs. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027 (as further explained below in Section 3.4.3.1. (Climate Change)).

To meet these additional regulatory requirements, expectations, and goals, we will need to continue to deploy additional equipment, introduce process changes, utilize alternative suppliers and materials, and take other similar actions, some or all of which may require us to incur additional costs which could result in a material adverse effect on our results of operations and our financial condition. To address climate change mitigation of our own operations, we have purchased renewable energy and may from time to time purchase renewable energy and/or carbon credits. In addition, if we fail to meet these requirements, expectations, or goals, or foster additional sustainability initiatives, we may experience reputational and/or litigation risk which could impact our ability to attract and retain customers, employees, and investors, as well as restrict our access to public funding.

Further, our sites, as well as those of our partners along the supply chain, may be exposed to changing and/or increasing physical risks resulting from climate change that are either chronic (induced by longer-term shifts in climate patterns, such as sea level rise or constraints in the availability of water, changing temperature, wind or precipitation patterns) or acute (event-driven such as cyclones, hurricanes or heat waves). In the context of the transition to a lower-carbon economy, we will likely be exposed to further policy, legal, technology, and market transition risks. We have already seen further policy developments in this area in the form of Regulation (EU) 2020/852 of the European Parliament and of the Council of June 18, 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (the “EU Taxonomy Regulation”), which entered into force on July 12, 2020. As a result of the EU Taxonomy Regulation, we must disclose information on how and to what extent our activities are associated with economic activities that qualify as environmentally sustainable.

Enhanced focus on issues concerning the protection of human rights, labor laws, environmental justice and climate change are resulting in a more complex regulatory environment, leading to potential additional legal risks, penalties or taxes. Directive (EU) 2022/2464 of the European Parliament and of the Council of December 14, 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (the “CSRD”), which entered into force on January 5, 2023, as well as the European Sustainability Reporting Standards (“ESRS”) published on July 31, 2023, strengthen the rules regarding social and environmental information that is required to be reported. Refer to Section 3.4. (Sustainability statement)”.

The CSRD seeks to provide investors and other stakeholders with access to the information they need to assess investment risks arising from climate change, social impact, and other sustainability topics, including mandatory supply chain due diligence requirements and new third-party assurance obligations. Should our partners not comply with current regulations, their performance may detrimentally impact our own results on climate change mitigation, social impact, energy efficiency, water use, chemicals and

pollution management, or waste disposal. Moreover, if our partners are unable to meet our climate change, social impact and sustainability criteria, we may engage with alternative partners at a higher cost.

In addition, California’s climate disclosure laws, such as AB 1305 (the “Voluntary Carbon Market Disclosures Act”), impose requirements to disclose scope 1, 2, and 3 GHG emissions, climate-related financial risks, information relating to any net-zero or carbon-neutral claims made and project-specific information upon purchase or use of certain voluntary carbon credits in California.

Any of the above requirements may in the future overlap in scope and diverge in content with each other and/or the rules of other jurisdictions to which we may be subject. If our disclosure metrics relating to climate change and other sustainability topics are lower than those of our peers in the industry, or are otherwise regarded as insufficient, this may lead to reputational risk which may lead to onward financial repercussions such as a decrease in share price or difficulty in raising capital.

In parallel, environmental, social and governance ("ESG") practices, especially regarding equal opportunity, have been increasingly subject to political controversy in the United States, most recently as a result of various executive orders signed by the current U.S. administration, aimed at limiting equal opportunities initiatives in the workplace. Our policies and practices regarding equal access and other ESG-related matters, including previously established goals and initiatives, or disclosures that may be required by non-U.S. laws, may expose us to legal, reputational and other risks, including ESG and equal opportunity-related orders, investigations, legislation, litigation, media coverage and scrutiny, boycotts and negative publicity from investors and other stakeholders.

This enhanced focus and increased regulations and initiatives, as well as related stakeholder expectations, have been and may continue to be subject to rapid and extensive change or reversal, and have resulted and may result in conflicts between regulatory regimes and stakeholders.

Individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.

Our standard terms and conditions of sale state that our products are not intended for certain uses. Our calculations for the anticipated GHG emissions reductions from the use of our products are based on certain common but significant assumptions, such as that all products are powered by grid electricity. Misuse of our products, or any deviation from our products’ anticipated uses, could result in difference in performance, decrease in product lifespan, product malfunction and an increase in energy consumption. Any such instances of misuse may lead to a failure to achieve our disclosed emission-reduction goals, adverse publicity, and may lead to legal action.

Loss of key employees and the inability to continuously recruit and retain qualified employees could hurt our competitive position.

Our success depends to a significant extent upon our key executives and R&D, engineering, marketing, sales, manufacturing, support and other personnel. Our success also depends upon our ability to continue to identify, attract, retain and motivate highly trained and skilled engineering, technical and professional personnel in a competitive recruitment environment, as well our ability to ensure the smooth succession, including executive succession, and continuity of business with newly hired and promoted personnel. For instance, in highly specialized areas, it may become more difficult to retain employees.

Our employee hiring and retention also depend on our ability to build and maintain a workplace culture based on principles of equal treatment and opportunity and be viewed as an employer of choice. We intend to continue to devote significant resources to recruit, train and retain qualified employees, however, we may not be able to attract, obtain and retain these employees, which may affect our growth in future years and the loss of the services of any of these key personnel without adequate replacement or the inability to attract new qualified personnel could have a material adverse effect on us.

The interests of our controlling shareholder, which is in turn indirectly controlled by the French and Italian governments, may conflict with other investors’ interests. In addition, our controlling shareholder may sell our existing common shares or issue financial instruments exchangeable into our common shares at any time.

We understand that as of December 31, 2025, STMicroelectronics Holding N.V. (“ST Holding”), owned 250,704,754 shares, or approximately 27.5%, of our issued common shares. ST Holding may therefore be in a position to effectively control the outcome of decisions submitted to the vote at our shareholders’ meetings, including but not limited to the appointment of the members of our Managing and Supervisory Boards (the "Managing Board" and the "Supervisory Board", respectively).

We have been informed that ST Holding’s shareholders, each of which is ultimately controlled by the French or Italian government, are party to a shareholders agreement (the “STH Shareholders Agreement”), which governs relations between them. We are not a party to the STH Shareholders Agreement. The STH Shareholders Agreement includes provisions requiring the unanimous approval by the shareholders of ST Holding before ST Holding can vote its shares in our share capital, which may give rise to a conflict of interest between our interests and investors’ interests, on the one hand, and the (political) interests of ST Holding’s shareholders, on the other hand. Our ability to issue new shares or other securities giving access to our shares may be limited by ST Holding’s desire to maintain its shareholding at a certain level and our ability to buy back shares may be limited by ST Holding due to a Dutch law requiring one or more shareholders acquiring 30% or more of our voting rights to launch a tender offer for our outstanding shares.

The STH Shareholders Agreement also permits our respective French and Italian indirect shareholders to direct ST Holding to dispose of its stake in us at any time, thereby reducing the current level of their respective indirect interests in our common shares. Sales of our common shares or the issuance of financial instruments exchangeable into our common shares or any announcements concerning a potential sale by ST Holding could materially impact the market price of our common shares depending on the timing and size of such sale, market conditions as well as a variety of other factors.

Our shareholder structure and our preference shares may deter a change of control.

We have an option agreement in place with an independent foundation, whereby the foundation can acquire preference shares in the event of actions which the board of the independent foundation determines would be contrary to our interests, our shareholders and our other stakeholders and which in the event of a creeping acquisition or offer for our common shares are not supported by our Supervisory and Managing Boards. In addition, our shareholders have authorized us to issue additional capital within the limits of the authorization by our annual general meeting of shareholders (our “AGM”), subject to the requirements of our articles of association (the "Articles of Association"), without the need to seek a specific shareholder resolution for each capital increase. Accordingly, an issue of preference shares or new shares may make it more difficult for a shareholder to obtain control over our general meeting of shareholders. These anti-takeover provisions could substantially impede the ability of our shareholders to benefit from a change in control and, as a result, may materially adversely affect the market price of our ordinary shares and our investors’ ability to realize any potential change of control premium.

Any decision to reduce or discontinue paying cash dividends to our shareholders could adversely impact the market price of our common shares.

On an annual basis, our Supervisory Board, upon the proposal of the Managing Board, may propose the distribution of a cash dividend to the general meeting of shareholders. Any reduction or discontinuance by us of the payment of cash dividends at historical levels could cause the market price of our common shares to decline.

We are required to prepare financial statements under IFRS and we also prepare Consolidated Financial Statements under U.S. GAAP, and such dual reporting may impair the clarity of our financial reporting.

We use U.S. GAAP as our primary set of reporting standards. Applying U.S. GAAP in our financial reporting is designed to ensure the comparability of our results to those of our competitors, as well as the continuity of our reporting, thereby providing our stakeholders and potential investors with a clear understanding of our financial performance. As we are incorporated in The Netherlands and our shares are listed in Europe on Euronext Paris and on Borsa Italiana, we are subject to EU regulations requiring us to also report our results of operations and financial statements using IFRS.

As a result of the obligation to report our financial statements under IFRS, we prepare our results of operations using both U.S. GAAP and IFRS, which are currently not consistent. Such dual reporting can materially increase the complexity of our financial communications. Our financial position and results of operations reported in accordance with IFRS will differ from our financial position and results of operations reported in accordance with U.S. GAAP, which could give rise to confusion in the marketplace.

There are inherent limitations on the effectiveness of our risk management and internal control(s) systems

There can be no assurance that a system of risk management and internal control over financial and non-financial reporting, including one determined to be effective, will prevent or detect all misstatements. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance regarding the preparation and presentation of the financial statements and non-financial disclosures. Projections of the results of any evaluation of the effectiveness of internal control over financial reporting and non-financial reporting into future periods are subject to inherent risk. The relevant controls may become inadequate due to changes in circumstances or the degree of compliance with the underlying policies or procedures may deteriorate.

Similarly, the ST risk management framework cannot provide comprehensive assurance as to its effectiveness to prevent any failures to achieve operational objectives nor any losses, fraud, human error, misjudgments in decision-making or non-compliance with laws, regulations, permits and other authorizations or licenses.

Any such significant operational errors or delays could materially adversely affect our ability to conduct our business, which could adversely affect results of operations due to potentially higher expenses and/or lower revenues, creating liability for ST and/or our customers and/or negatively impact our reputation.

If we fail to comply with laws, regulations, permits and other authorizations or licenses, we could be fined or otherwise sanctioned by regulators, which may include directives to cease operations, fines and penalties as well as prosecution, which could harm our reputation and relationships with stakeholders and, in turn, have a material adverse impact on our business.

Because we are subject to the corporate law of The Netherlands, U.S. investors might have more difficulty protecting their interests in a court of law or otherwise than if we were a U.S. company.

Our corporate affairs are governed by our Articles of Association and by the laws governing corporations incorporated in The Netherlands. The rights of our investors and the responsibilities of members of our Managing and Supervisory Boards under Dutch law are not as clearly established as under the rules of some U.S. jurisdictions. Therefore, U.S. investors may have more difficulty in protecting their interests in the face of actions by our management, members of our Managing and Supervisory Boards or our controlling shareholders than U.S. investors would have if we were incorporated in the United States.

Our executive offices and a substantial portion of our assets are located outside the United States. In addition, ST Holding and most members of our Managing and Supervisory Boards are residents of jurisdictions other than the United States. As a result, it may be difficult or impossible for shareholders to effect service within the United States upon us, ST Holding, or members of our Managing or Supervisory Boards. It may also be difficult or impossible for shareholders to enforce outside the United States judgments obtained against such persons in U.S. courts, or to enforce in U.S. courts judgments obtained against such persons in courts in jurisdictions outside the United States. This could be true in any legal action, including actions predicated upon the civil liability provisions of U.S. securities laws. In addition, it may be difficult or impossible for shareholders to enforce, in original actions brought in courts in jurisdictions located outside the United States, rights predicated upon U.S. securities laws.

We have been advised by Dutch counsel that the United States and The Netherlands do not currently have a treaty providing for reciprocal recognition and enforcement of judgments (other than arbitration awards) in civil and commercial matters. With respect to choice of court agreements in civil or commercial matters, it is noted that the Hague Convention on Choice of Court Agreements entered into force in The Netherlands, but has not entered into force in the United States. As a consequence, a final judgment for the payment of money rendered by any federal or state court in the United States based on civil liability, whether or not predicated solely upon the federal securities laws of the United States, will not be enforceable in The Netherlands. However, if the party in whose favor such final judgment is rendered brings a new suit in a competent court in The Netherlands, such party may submit to The Netherlands court the final judgment that has been rendered in the United States. If The Netherlands court finds that the jurisdiction of the federal or state court in the United States has been based on grounds that are internationally acceptable and that proper legal procedures that are in accordance with the Dutch standards of proper administration of justice including sufficient safeguards (behoorlijke rechtspleging) have been observed, the court in The Netherlands would, under current practice, in principle give binding effect to the final judgment that has been rendered in the United States unless such judgment contradicts The Netherlands’ public policy and provided that the judgment by the foreign court is not incompatible with a decision rendered between the same parties by a Dutch court, or with a previous decision rendered between the same parties by a foreign court in a dispute that concerns the same subject and is based on the same cause, provided that the previous decision qualifies for acknowledgment in The Netherlands. Even if such a foreign judgment is given binding effect, a claim based thereon may, however, still be rejected if the foreign judgment is not or no longer formally enforceable.

3.3.1.3. Illustrative risk management measures

Corporate governance

Our adherence to the good principles of corporate governance is outlined in Section 5.1. (Commitment to the principles of good corporate governance). The Supervisory Board and its committees, and the Managing Board, through their structures, charters and activities ensure proper corporate governance as described in Section 5 (Corporate Governance).

Product quality

Quality is a key priority for us. Our vision is to elevate ST to the highest level of quality as an asset for our customers. We can achieve a high level of quality because our employees and management are committed to quality, focused on customer’s targets, and improvement programs are effective.

Global Quality and Reliability (“GQR”) is organized at Company level and embedded in all our organizations. The GQR leadership team brings together quality directors from across our entire business operations (front-end and back-end manufacturing, product groups, sales regions and corporate organizations) to deploy our quality strategy and quality programs throughout the Company.

We are continuously adapting to have the necessary advanced and innovative infrastructure and organization to ensure our products meet the highest quality and reliability requirements in the markets we address.

Our quality governance is based on our quality management system, part of our enterprise management system, as documented in our quality manual. It details how we implement processes allowing to meet the highest customer and standards requirements.

We adhere to internationally recognized quality management standards. We received our first company wide ISOTS16949 certification in 2003 and this certification was renewed every three years since that time. Since 2018, we have been certified IATF 16949:2016 and ISO 9001:2015 demonstrating our robust quality governance, effective quality management system and quality compliance across the Company. In 2025, we were certified ISO SAE 21434 confirming that we established a certified management system and governance which meets and complies with the requirements of the automotive industry in the field of cybersecurity process management within product development phases.

Environment (ST operations, including climate change mitigation, water and pollution)

Our approach to managing our Company in an environmentally responsible way (including climate change mitigation, water and pollution) is outlined in Section 3.4.3. (Environment).

Social (including health & safety and working conditions)

Our approach to protecting the health and safety and working conditions of our employees and onsite value chain workers is outlined in Section 3.4.4. (Social).

Finance

Our approach to financial risk management is outlined in Section 3.2.6. (Financial Risk Management).

Legal and ethics & compliance

Legal

ST operates in a complex and evolving legal and regulatory environment across multiple jurisdictions and aims to comply with applicable laws and regulations.

We maintain a dedicated legal department responsible for identifying and assessing legal risks, by monitoring relevant legal developments, drawing up internal guidance, policies and contractual standards, and supporting their implementation throughout the company. In addition, we consult with external legal advisors to complement our dedicated legal department.

Furthermore, our legal department collaborates with other ST departments to identify legal risks and implement appropriate safeguards. We conduct legal training to increase awareness of legal risks and share best practices throughout the company.

ST also collaborates transparently with (regulatory) authorities and as such gains insight into compliance expectations of such authorities and stays up to date with the implementation of and proposed changes to the regulatory landscape applicable to ST.

Ethics & compliance

We believe that conducting our business with the highest standard of integrity is essential to our long term success, and that compliance & ethics is everyone’s job and responsibility.

Our Code of Conduct embodies our values and principles, which are shared throughout the Company. ST Code of Conduct serves as the highest reference for guiding our behavior, decision-making, and activities. Our values are:

•integrity: we conduct our business with the highest ethical standards, honor our commitments, deliver on our promises, are loyal and fair, and stand up for what is right.

•people: we behave with openness, trust and simplicity; we are ready to share our knowledge, encourage everyone’s contribution, develop our people through empowerment, teamwork and training; each one of us is committed and personally involved in the continuous improvement process; and

•excellence: we strive for quality and customer satisfaction and create value for all our partners; we are flexible, encourage innovation, develop our competences, seek responsibility and are accountable for our actions; we act with discipline, base our decisions on facts, and focus on the priorities.

Further information on our approach to conducting business with the highest standard of integrity is outlined in Section 3.4.5. (Business conduct).

Cyber security

Cybersecurity risk management is an integral part of the overarching risk framework and seeks to identify and address fast-evolving cybersecurity threats. The management of cybersecurity risks is governed by the Executive Committee and receives regular oversight from the Audit Committee as a standing item.

We have a specialized Information Security team within the wider Digital Transformation and Information Technology department of the Company, which covers the following:

•program definition and steering;

•framework, which include third-party security;

•security awareness;

•architecture and engineering;

•protection of business applications;

•protection of business solutions (R&D, manufacturing and industrial solutions, business applications);

•protection of IT infrastructures;

•cybersecurity operations (such as risk-based vulnerability management); and

•detection and reactions to information security incidents, as part of the wider crisis management process.

In particular, within our Information Security team, the Cybersecurity Incident Response Team monitors on a continuous basis the evolving cyber threats, and detect and analyze incidents. Based on their initial assessments, any significant risk is escalated and would, if required, trigger the activation of a Corporate Crisis Team (a "CCT"). This CCT would lead the Company response (e.g. containment, forensic investigation, system restoration, and any associated business impact). The CCT would periodically inform the Executive Committee of any developments, and the Executive Committee would in-turn keep the Audit Committee and Supervisory Board informed.

In addition, we created a Third-Party Management function within our Global Procurement Organization, with the aim to embed cybersecurity risks in the overall management of third parties.

The maturity of our overall risk framework design and implementation, which includes cybersecurity risks, is periodically audited by a leading independent organization.

Furthermore, we have been ISO 22301 (Security and Resilience) certified since 2016. Throughout 2025, our continuous improvements have been subjected to both internal audits and external surveillance audits from the certification body. We have also been certified ISO SAE 21434 (Road Vehicles – Cybersecurity Engineering) since 2022, confirming that we established a certified management system and governance which meets and complies with the requirements of the automotive industry in the field of cybersecurity process management within product development phases.

3.3.1.4. Risks having had a significant financial impact during 2025

We operate on a worldwide basis in an economic environment impacted by many risk factors, which generates uncertainties on future economic conditions. In 2025, our activities were impacted by several risks, such as volatility in exchange rates, market downturn, and uncertainty regarding certain income tax positions. However, these risks did not have overall a material adverse impact on the Company’s financial results.

3.3.2. Internal control systems

Related to the ERM framework we have implemented two internal control systems regarding financial reporting and sustainability reporting, respectively.

3.3.2.1. Internal control system regarding financial reporting risks

We have a standard set of internal controls (including entity-level controls, business controls and IT controls) and procedures over financial reporting in place. These are based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013). These controls and procedures take into account identified risk factors that could potentially influence our operations and financial objectives.

3.3.2.2. Internal control system regarding sustainability reporting risks

For a description of our risk-based internal control system over sustainability reporting reference is made to Section 3.4.2.2.D. (Risk management and internal controls over sustainability reporting).

3.3.3. Internal Audit

Our internal audit organization (our "Corporate Audit") is independent of our management. Corporate Audit’s purpose is to strengthen our Company’s ability to create, protect, and sustain long-term value by providing the Supervisory Board and management with risk-based and objective assurance, advice, insight, and foresight.

Corporate Audit has defined its strategy that supports the strategic objectives and success of the Company. This strategy is periodically reviewed with the Audit Committee and Executive Management. .

Corporate Audit develops an annual audit plan, it applying risk-based assurance strategies tailored to address different risk categories and aiming at addressing a constantly changing environment and risk landscape. The annual plan is reviewed annually by our Audit Committee and approved by our Supervisory Board. Each year, the audit plan includes assurance and advisory assignments covering a variety of organizational units, processes and risks in the following manner:

•Financial reporting risks: Corporate Audit has defined its risk-based testing strategy of management controls (addressing both control design and operating effectiveness). It performs

its annual testing program based on an annual scoping exercise. The results of the control testing (including potential control deficiencies) are reported to a dedicated committee and the Audit Committee.

•Sustainability reporting risks: As the internal control system over sustainability reporting is being gradually deployed, Corporate Audit adapts its related assurance strategy. A risk-based testing of management control program is being deployed.

•Operational and compliance risks: The annual audit plan addresses operational and compliance risks, applying specific assurance strategies. More specifically, It takes into account the following typologies or risk: 1) risks inherent to the Company’s strategic plan and/or derived from the annual ERM Company risk assessment process; 2) risks related to specific regulations where audit activities are required; 3) risks related to activities covered with a cyclical approach. Audit findings and associated recommendations are reported to line management, the Managing Board and the Audit Committee.

Corporate Audit conducts its activities in conformance with the Institute of Internal Auditors' Global Internal Audit Standards.

3.3.4. Statement on risk management and internal control (systems)

The Managing Board recognizes the inherent limitations of internal risk management and control systems. Whilst the Company continuously works towards improving its processes and procedures, these systems cannot provide absolute certainty that all risks have been identified or are effectively managed.

We regularly evaluate the effectiveness of our internal controls and procedures and correspondingly advise our Audit Committee on the results of such evaluations, any changes to such internal controls and procedures. Specifically with regard to the controls and procedures over financial reporting, we also advise our Audit Committee on any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to affect our ability to record, process or summarize and report financial information to our auditors and to our Audit Committee. Likewise, any fraud, whether or not material, that involves management, or other employees who have a significant role in our internal control over financial reporting, are disclosed to our external auditors and to our Audit Committee, which informs our Supervisory Board.

Our internal risk management and control systems, including the structure and operation thereof, were discussed and evaluated on several occasions with our Audit Committee, and also discussed by our Supervisory Board, during 2025 (in accordance with best practice provision 1.4.1 of the Dutch Corporate Governance Code).

Statement by the Managing Board

Based on the information included in this Section 3.3. (Risk management and Internal Control), its assessment, and with reference to Best Practice Provision 1.4.3 of the 2025 Dutch Corporate Governance Code, the Managing Board states to the best of its knowledge:

1.that the management report provides sufficient insights into major failings in the effectiveness of the risk management framework and internal control systems;

2.that in relation to the Company’s financial reporting the internal control system over financial reporting operated effectively during 2025 and provides reasonable assurance that the Company’s financial reporting does not include any errors of material importance as of and for the 2025 financial year;

3.that, based on the current state of affairs, it is justified that the financial reporting is prepared on a going concern basis;

4.that the management report states those material risks and uncertainties, that are relevant to the expectation of the Company’s continuity for the period of twelve months after the preparation of the report;

5.that the internal control system over sustainability reporting provides limited assurance that Section 3.4. (Sustainability statement) of this report does not contain material inaccuracies; and

6.that the Managing Board at balance sheet date is not aware of any reason to conclude that the risk management framework does not provide comfort that the operational and compliance risks identified in Section 3.3.1.2. (Risk factors) of this management report are effectively managed, where 'comfort' is to be read as comfort considering our risk appetite, the strategy and complexity of our Company and inherent limitations to these systems.

Due to inherent limitations of risk management and internal control systems, the above does not imply that these systems and procedures provide absolute certainty as to the realization of strategic, operations, compliance and reporting objectives, nor that they can prevent all misstatements, inaccuracies, fraud, operational issues, and non-compliance with laws and regulations.

3.4. Sustainability statement

3.4.1 Introduction

As an integrated device manufacturer providing semiconductor devices, we handle most manufacturing in-house. We have over 48,000 employees and manufacturing sites worldwide. The manufacturing of semiconductor devices requires natural resources, water, energy, and chemicals, and is labor-intensive. Our strategy and business model take into account the material impacts we may have on the environment, our own workforce, our supply chain workers and our affected communities.

ST sustainability approach

Sustainability has been a guiding principle at ST for more than thirty years and is embedded in our activities. We implement programs and take action to manage our material impacts, opportunities, and risks within our own operations and relevant sections of our value chain. To minimize our impact on people, we put people first and prioritize health and safety, well-being and human and labor rights. We strive to minimize our impact on the environment by, inter alia, reducing our GHG emissions, reducing energy consumption and addressing water and waste related challenges.

At the heart of our strategy is a strong focus on identifying topics that matter to our business and stakeholders, through a DMA, which includes a review with our key stakeholders. Based on this DMA and taking into account stakeholder perspectives, our sustainability strategy, policies, programs, targets and objectives are regularly reviewed and adjusted as appropriate to manage identified material sustainability topics.

To address relevant material sustainability topics, ST has various management systems in place, which are aligned with international standards and/or proven practices. In that regard, relevant ST sites are ISO certified (e.g., ISO 45001: international standard for an occupational health and safety management system; ISO 14001: international standard for environmental management system and ISO 50001: international standard for energy management system). The relevant certifications are further indicated in Appendix 11.8.

We participate in the collective efforts of the industry to formulate solutions to global sustainability challenges. In this regard, we are a full member of the Responsible Business Alliance ("RBA"), an industry coalition dedicated to responsible business conduct in global supply chains. Our policies are aligned with the RBA Code of Conduct and relevant internationally recognized standards and instruments, including OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human

Rights, UN Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work and ILO Fundamental Conventions. For an overview of ST's relevant sustainability policies, please refer to the policy overview table in Appendix 11.7.

In connection with our efforts on managing sustainability topics, in 2025 we were included in several sustainability indices, such as the Euronext Vigeo Eiris Europe 120 index, MSCI AAA(1), ISS ESG Prime, Ecovadis Platinum, FTSE4Good top 10% and Bloomberg top 5%. For 2025 we received a B score from the CDP both for climate change for water security. We remain a signatory of the United Nations ("UN") Global Compact and have been a signatory since 2000. Our sustainability programs are aligned with its ten principles and contribute to 11 of the 17 UN Sustainable Development Goals (“SDG”).

CSRD

On January 5, 2023, the CSRD entered into force, introducing obligations for companies to report on material sustainability topics and the ESRS, as introduced in 2023, set forth the required disclosures on environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption and bribery, and equal treatment and opportunities.

Being a Directive, all EU Member States and EEA countries are required to implement the CSRD into domestic law. The deadline for such implementation was July 6, 2024. While certain EU member states have implemented the CSRD into domestic law, the Netherlands, has not yet done so. The legislative proposal to implement the CSRD into Dutch law was submitted to the Second Chamber of the Dutch Parliament for further parliamentary proceedings. This process is put on hold due to the developments around the Omnibus (defined below) which will amend the CSRD during the course of 2026. At the date hereof, there is no certainty on the effective date of the implementation of the CSRD into Dutch law. As we are a company incorporated and governed under Dutch law, this means that we are not legally required to report in accordance with the CSRD with respect to 2025. However, considering the current status of the CSRD implementation in the Netherlands and the potential retroactive effect thereof, we have prepared our sustainability statement for 2025 based on the general principles of the CSRD and included this statement in the current section of our Dutch annual report. There are no other entities in the ST Group that are legally required to report in accordance with the CSRD for this reporting year.

Our sustainability reporting approach is based on the most recent guidance on the CSRD and we have used estimates and assumptions where appropriate, as further detailed in the relevant sections of this sustainability statement. However, it should be noted, that the Dutch legislation implementing the CSRD is still in draft form and this legislation is still subject to further amendments, guidance and interpretation, and that the CSRD is still under development and its interpretation and application is evolving. Notably, on February 26, 2025, the European Commission adopted the omnibus simplification package (“Omnibus”) to reduce reporting burdens under, amongst others, the CSRD and EU Taxonomy Regulation, as it introduces changes to the reporting requirements through a substantial reduction of the ESRS datapoints. The provisional agreement on the text of the Omnibus was agreed on December 16, 2025 and published in the Official Journal of the European Union on February 26, 2026. The amendments following from the Omnibus became effective as per March 18, 2026.

Taking the aforementioned into account, including that this is the second year that we are voluntarily reporting under the CSRD, we note that our sustainability reporting approach may change in the coming years.

3.4.2 General sustainability disclosure (ESRS 2)

3.4.2.1 General basis for preparation (ESRS 2 BP 1 and BP 2)

(1) The use by ST of any MSCI ESG RESEARCH LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of ST by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

ESRS

As referenced above, this sustainability statement has been drawn up in alignment with the CSRD and is based on the ESRS, with the use of all applicable phase-in options included in ESRS 1 Appendix C. It contains required disclosures on the material sustainability matters as assessed through a DMA conducted in 2025 ("2025 DMA") and on other matters for which disclosure is required under the ESRS.

Consolidated sustainability statement

ST has prepared this sustainability statement with a detailed review of its consolidated perimeter. As a result, its scope of consolidation is now extended to match that of the financial statement. In comparison to last year, ST was able to collect the energy and water consumption for all our sites during the reporting year, and estimated the waste related amounts. As disclosed in our 2024 DAR, the extension of the scope of consolidation to all our sites resulted in a minor impact on the full year value that is, less than 1% depending on the disclosures. In future years, from financial year 2026 onwards, two sites will be included in our environmental data collection (Chongqing (Sanan ST JV) and Catania's new 200mm SiC manufacturing facility) once they are in production, while the current employees are included in our social metrics for 2025.

The qualitative information in this sustainability statement covers ST’s own operations and relevant sections of its value chain, based on the outcomes of the 2025 DMA. A description of ST’s upstream and downstream value chain is further included in Section 3.4.2.3.A. (Strategy, business model and value chain).

In preparing this sustainability statement no specific information has been omitted, due to being assessed to be classified or sensitive information, nor has information relating to IP, know-how or the results of innovation, has been omitted.

Specific circumstances

Time horizons

The reporting period for the sustainability statement is consistent with the reporting period of the financial statements.

The time horizons referred to in the sustainability statement are based on the definition of the ESRS, unless specifically mentioned otherwise.

Value chain estimation

ST is not reporting any value chain data except with regard to scope 3 GHG emissions, where we have used estimations. In the case of GHG emissions, additional elements regarding the basis of preparation for the scope 3 categories along with the level of accuracy are described in the relevant environmental section.

We note that our ability to receive primary data from suppliers or other value chain partners is highly dependent on the evolution of external requirements, the ability of these stakeholders to calculate and provide the information to us and our variety of partners with operations worldwide. If the availability and quality of information from our value chain partners improve in the future we expect to enhance our methodology for value chain reporting.

Sources of estimation and outcome uncertainty

The preparation of this sustainability statement in accordance with the ESRS requires management to make estimates and assumptions.

The primary areas that required significant estimates and judgments by management include but are not limited to:

•scope 1, 2 and 3 GHG emissions, where any update on the GHG Protocol or emission factor database would have an impact on the total GHG emissions;

•scope 3 GHG emissions, which rely on various estimation methods without, at this stage, access to primary data from value chain stakeholders; and

•information on pollution of air and water along with waste classification, which are dependent on external regulations that are constantly evolving and on current measurement techniques, which could change over time.

Various data points stem from European regulations, such as the E-PRTR (European Pollutant Release and Transfer Register Regulation) on pollution in Section 3.4.3.2. (Pollution), and on the emission trading scheme in Section 3.4.3.1. (Climate change), and Annex III of Directive 2008/98/EC of the European Parliament and of the Council on waste for Section 3.4.3.4. (Waste and circular economy) where any change either in terms of threshold or categorization would have a direct impact on the amount reported in a fiscal year.

Similar to the previous year, estimates and judgments have been identified for all the disclosed targets and metrics and are further described in the relevant sections. When used, they are based on operational considerations linked to our manufacturing footprint, current state of the art in terms of measurement techniques or are driven by industry-specific limitations.

Forward-looking statement

This sustainability statement includes forward-looking statements based on disclosed assumptions about possible future events and possible actions by ST. This includes ambitions, objectives and targets. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under current circumstances.

In addition, ST operates on a worldwide basis in an economic environment impacted by many risk factors which generates uncertainties on future economic conditions that might impact ST’s forward-looking environmental and social performance.

Any such forward-looking statement involves uncertainties and is subject to change.

Changes in preparation and presentation of sustainability information

2025 being our second year of reporting under the ESRS, ST reports on the variations from reporting year 2024 compared to reporting year 2025. The variations are explained below each metric table.

For the reporting year 2025, only one prior period adjustment has been identified and relates to the amount of Nitrogen reported under E2-4 Pollutants emitted to water. 2025 being our second year of reporting under the ESRS, certain variations reflect minor adjustments performed between 2024 and 2025 following the evolution of our data collection and review processes. Metrics required under E2-5 have not been disclosed for the reporting year 2025, due to ongoing review of the data collection process.

Based on the Omnibus we have made use of the extended phase-in options provided in ESRS 1 Appendix C.

We expect our sustainability reporting (quantitative and qualitative) to keep evolving over time, as the ESRS are further being revised. More insights will be gained on market and assurance practices, and on our internal processes with the expansion of internal control over sustainability reporting.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

We have included information from generally accepted sustainability reporting standards (e.g.,the GHG Protocol) and legislation (refer to Appendix 11.2.) in this sustainability statement.

Incorporation by reference

We used the option to incorporate information in this sustainability statement by reference, as defined in ESRS 1. The information that has been incorporated by reference is included in the table in Appendix 11.2.

We included references to external sources and links to websites (for example st.com) for information purpose only, noting that these references and links are not incorporated by reference into this sustainability statement.

Entity-specific information

All material IROs identified in the 2025 DMA stem from the sustainability topics included in the ESRS. Certain targets we have set, related to these IROs, include entity-specific information, as further described in the disclosure of the relevant target, marked as "entity-specific".

The targets are set based on the assumption of constant ST data activity (i.e. perimeter and production) and a consistent GHG computation methodology or regulatory framework over the 2024–2030 target period. To the extent relevant, any change is further described below each target and mainly relates to the update of the emission factors and a minor update of the perimeter for the water recycling target. The perimeter of each target is further described in Appendix 11.9., and might slightly differ from the consolidated financial and sustainability statement perimeter.

3.4.2.2. Governance

3.4.2.2.A. The role of, information provided to, and sustainability matters addressed by the administrative, management and supervisory bodies (GOV-1)

We have a two-tier governance structure, in accordance with Dutch law. Our management is entrusted to our Managing Board under the supervision of our Supervisory Board.

No representatives of our employees and other workers are included in our administrative, management and supervisory bodies.

Composition of the supervisory body and its responsibilities

Supervisory Board, Sustainability Committee and Audit Committee

Our Supervisory Board consists of 9 members, of whom 33.33% are female and 66.67% are male. Based on the independence criteria set for the members of our Supervisory Board, a majority of its members are considered independent. Further details on the composition and experience of our Supervisory Board members can be found in Section 4.1. (Composition of the Supervisory Board - Biographies), which includes their personal details and biographies.

Our Supervisory Board is responsible for overseeing the policies pursued by our Managing Board and supporting the Managing Board with its advice. The Supervisory Board has a sustainability committee (the "Sustainability Committee") which supports and advises the Supervisory Board in relation to its responsibilities in supervising, monitoring and advising on ST's sustainability strategy, targets, goals and overall sustainability performance.

The responsibilities of the Sustainability Committee, detailed in its charter available on st.com include, but are not limited to:

•monitoring and advising on sustainability policies and practices, including, but not limited to, social and environmental;

•monitoring and assessing sustainability developments and emerging trends in the semiconductor industry;

•reviewing stakeholders' feedback relating to sustainability;

•monitoring the sustainability performance of the Company;

•monitoring sustainability matters;

•monitoring and advising on the Company’s sustainability strategy, targets, goals, and overall sustainability performance; and

•monitoring that the sustainability strategy is aligned with the corporate strategy of the Company and vice versa.

The Supervisory Board has an audit committee (the "Audit Committee"), which assists the Supervisory Board in fulfilling its oversight responsibilities relating to corporate accounting, reporting practices, and the quality and integrity of ST's financial and non-financial reports.

The responsibilities of the Audit Committee in relation to non-financial reporting, detailed in its charter available on st.com include, but are not limited to:

•monitoring the non-financial reporting process and making proposals to safeguard the integrity of that process;

•monitoring the effectiveness of the Company’s internal control and risk management systems in relation to its non-financial reporting; and

•reviewing annual and interim financial statements and other non-financial information.

Composition of the administrative and management bodies and their responsibilities

Managing Board, Executive Committee, Senior Management and Corporate Affairs Committee

Our Managing Board consists of two male members - our President and Chief Executive Officer and our President and Chief Financial Officer - who are entrusted with the general management of our Company, including setting and implementing our sustainability strategy.

Our President and Chief Executive Officer chairs our Executive Committee, consisting of 8 members, of whom 12% are female and 88% are male. Our Executive Committee acts under the authority and responsibility of the Managing Board and in this respect manages our Company together with the Managing Board.

Further information on the composition and experience of our Managing Board and our Executive Committee can be found in Section 5.4. (Managing Board). Further details on the gender balance in our Managing Board and Executive Committee can be found in Section 5.5. (Dutch Gender Balance Act).

Our Senior Management consists of the members of our Managing Board, the members of our Executive Committee and our Executive Vice Presidents, totalling thirty-one members, of which 12.9% are female and 87.1% are male. Further information on the composition of our Senior Management as well as their experience can be found in Section 5.4. (Managing Board). Further details on the gender balance in our Senior Management can be found in Section 5.5. (Dutch Gender Balance Act).

The Corporate Affairs Committee, a sub-committee of the Executive Committee (the "Corporate Affairs Committee"), advises and supports the Managing Board and Executive Committee in relation to their respective responsibilities regarding, amongst others, (i) defining and aligning corporate communications

related to ST’s corporate social responsibility, ESG, compliance & ethics initiatives and activities; and (ii) assessing and recommending processes and policies related to such initiatives and activities.

Governance process to monitor, manage and oversee sustainability matters

We have reassessed, adjusted and formalized our governance processes to monitor, manage and oversee our material sustainability matters and specific related material IROs assessed in the 2025 DMA. In this regard we have enhanced and put in place specific sustainability programs and dedicated activities to manage our material sustainability matters, with relevant governance processes established to monitor and track the progress of our long-term targets and objectives. Within these programs and dedicated activities, reports are made to program boards composed of executives from various ST departments, and the overall status is shared on a quarterly basis with the Managing Board, the Executive Committee and the Senior Management.

Our Managing Board is responsible for formulating and directing our sustainability strategy and long-term sustainability targets, and the Supervisory Board is responsible for overseeing these activities.

On a quarterly basis, the Sustainability Committee, the Managing Board, the Executive Committee and the Senior Management, are updated on sustainability topics and ST's sustainability performance and targets by our President of Human Resources and Corporate Social Responsibility ("CHRO"), our Corporate Sustainability Group Vice President ("Group VP Sustainability") and relevant sustainability experts.

The Corporate Affairs Committee regularly informs the Managing Board and Executive Committee, updating them on relevant sustainability topics.

In 2025, we installed the Sustainability Statement Steering Committee ("Sustainability Statement SteerCo") consisting of our President and Chief Financial Officer, our CHRO, our Chief Ethics & Compliance Officer and our Executive Vice President, Chief Audit & Risk Executive, to oversee and provide guidance during the preparation of our sustainability statement. The scope of the Sustainability Statement SteerCo is compliance with the CSRD and underlying ESRS and EU Taxonomy Regulation. In 2025, its primary purpose was to review the outcome of the 2025 DMA, the quality and integrity of non-financial reporting and the fair representation of ST's sustainability performance. The role and scope of the Sustainability Statement SteerCo might evolve in the coming years, notably in alignment with the development of the ICSR framework, sustainability reporting legislation and other relevant legislation.

While the ERM framework covers the management and oversight of sustainability-related risks, we continue to evaluate how to expand it to further embed sustainability-related impacts and opportunities. Material risks assessed in the DMA are embedded in the Company priority risk map, which is updated annually, and are managed based on the ERM framework described in Section 3.3.1.1. (Risk management approach).

Sustainability target-setting

Annual targets and long-term targets are set by the Executive Committee and are supervised by the Sustainability Committee. Their performance is reviewed each quarter.

Our corporate sustainability department ("Corporate Sustainability") is responsible for coordinating the sustainability target-setting process. Sustainability-related targets are set and/or updated based on, amongst others, the outcomes of the DMA. Although there was no direct engagement with specific stakeholders in the target-setting process, the interests and views of our (external) key stakeholders are included in the DMA as described in Section 3.4.2.3.B. (Interests and views of stakeholders), and are taken into consideration by ST when setting or updating sustainability-related targets, based on the material IROs assessed in the DMA.

For each sustainability matter identified as material in the DMA, a person who is skilled and knowledgeable on the relevant sustainability matter is engaged to define sustainability-related targets as appropriate (“Goal Owners”). As relevant, the Goal Owners propose sustainability-related targets that

respond to the relevant respective material IROs, in collaboration with all relevant internal stakeholders (i.e., relevant ST departments whose perimeter is covered by the scope of the target). The Executive Committee reviews and approves the sustainability-related targets and presents them to the Sustainability Committee. Sustainability-related targets may change from time to time in accordance with the outcomes of each DMA. Any amendments to the targets follow the same process as the target-setting, including review and approval by the Executive Committee. ST's current sustainability targets and the material IROs they respond to are included in the IRO tables in Appendix 11.4. and Appendix 11.9.

Corporate Sustainability is in charge of monitoring the targets. The Group VP Sustainability is responsible for the definition of the key performance indicators (each a "KPI" and together, the "KPIs"), monitoring and quarterly reporting to management.

We disclose any changes made in the reporting year to previously set targets regarding a material sustainability matter in the relevant target disclosure section, relating to that specific sustainability matter. We review our targets on a regular basis and update where needed to reflect our sustainability strategy and to manage our material IROs effectively. This includes material sustainability matters for which we have not yet set targets. For a full overview of ST's current long-term sustainability targets, please refer to Appendix 11.9.

Sustainability expertise

Corporate Sustainability, as well as site sustainability teams and other local teams, include people with a sustainability focus and relevant sustainability knowledge who have a background in various social, environmental and safety topics, including climate change, pollution, water and waste, as well as work-related rights - such as working conditions and human rights regarding our own workforce and supply chain workers - and the rights of affected communities. Our Compliance, Ethics and Privacy Department consists of professionals with specialized knowledge on business conduct matters, including whistleblower protection, corruption and bribery. Furthermore, our internal Legal Department and Corporate External Reporting Department include professionals who are dedicated to non-financial reporting and who have extensive knowledge of the ESRS.

Addressing sustainability matters during 2025

In 2025, our CHRO and the Group VP Sustainability attended the quarterly Sustainability Committee meetings, together with representatives of relevant departments focusing on sustainability. Topics discussed included: customer and investors sustainability requirements, environmental, value chain and social aspects.

Furthermore, during 2025 the DMA results were communicated to and approved by the Executive Committee and were thereafter presented to the Audit Committee, which acknowledged the results. The material IROs identified in the 2025 DMA are addressed by specific programs or regular dedicated activities, and the Executive Committee and Supervisory Board are updated on their progress,

The priority risks, including sustainability-related risks, are considered in our strategy, and are monitored and managed in accordance with our ERM framework, by the Managing Board, Executive Committee and Senior Management under the oversight of the Supervisory Board.

When overseeing our strategy in 2025, our Management and Supervisory Board considered sustainability topics in general and more specifically certain IROs in specific cases or projects, such as those related to climate change, energy, chemicals and pollution prevention, labor rights of our own workforce, water and affected communities, and the health and safety our own workforce.

3.4.2.2.B. Integration of sustainability-related performance in incentive schemes (ESRS 2 GOV-3)

The remuneration policy of our Supervisory Board does not include sustainability-related performance.

The remuneration policy of our Managing Board, Executive Committee and Senior Management includes sustainability-related performance. More specifically, we have, amongst others, factored in climate-related considerations into their remuneration. The short-term incentive and long-term incentive program included a KPI for environment/climate (kCO2eq), aligned with our previous long-term sustainability targets. For more information on the performance against the environmental/climate KPI, we refer to Section 4.9.3.2. (Senior Management remuneration structure – Short-term 2025 incentive), Section 4.9.3.2. (Senior Management remuneration structure – Long-term incentive) and Note 7.6.20. (Equity).

For the disclosure required under ESRS 2 GOV-3 paragraphs 27 and 29, regarding how sustainability-related performance is included in incentive schemes of our Managing Board, Executive Committee and Senior Management, reference is made to the disclosure included in the remuneration report:

•Section 4.9.2.3. (Managing Board remuneration structure – Performance criteria 2025 short-term incentive) regarding the inclusion of sustainability-related performance criteria in the short-term incentive of our Managing Board and Section 4.9.2.3. (Managing Board remuneration structure – Long term incentive grant in 2025) regarding the inclusion of sustainability-related performance criteria in the 2025 long-term incentive of our Managing Board.

•Section 4.9.3.2. (Senior Management remuneration structure – Short-term incentive) regarding the inclusion of sustainability-related performance criteria in the short-term incentive of our Senior Management (including our Executive Committee) and Section 4.9.3.2. (Senior Management remuneration structure – Long-term incentive) regarding the inclusion of sustainability-related performance criteria in the long-term incentive of our Senior Management (including our Executive Committee).

3.4.2.2.C. Statement on due diligence (ESRS 2 GOV-4)

In line with our Code of Conduct, we have embedded responsible business conduct into our governance, strategy and business model. Our principles of responsible business conduct are informed by internationally recognized standards.

ST recognizes that conducting due diligence is an important element in managing our impacts on people and the environment. It allows us to identify, prevent, mitigate and address such impacts connected to our business. Our due diligence processes are based on, inter alia, the international instruments of the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Due diligence is an ongoing process, and we routinely evaluate our practices and policies, updating them as appropriate. For more information on the application of the main aspects and steps of our due diligence process as reflected in this sustainability statement, we refer to the sections in the table below.

Core Elements of Due Diligence

ESRS 2

a) Embedding due diligence in governance, strategy and business model

3.4.2.2.A. (GOV-1)

3.4.2.2.B. (GOV-3)

3.4.2.3.C. (SBM-3)

3.4.2.2.B. (GOV-3)

3.4.3.1.A. (SBM-3)

3.4.4.1.A. (SBM-3)

3.4.4.2 (SBM-3)

3.4.4.3 (SBM-3)

3.4.5

3.4.5.1

b) Engaging with affected stakeholders in all key steps of the due diligence

3.4.2.2.A. (GOV-1)

3.4.2.3.B. (SBM-2)

3.4.2.4.A. (IRO-1)

3.4.3.1.A. (IRO-1)

3.4.3.1.B.

3.4.3.2.A. (IRO-1)

3.4.3.2.B.

3.4.3.3.A. (IRO-1)

3.4.3.3.B.

3.4.3.4.A. (IRO-1)

3.4.3.4.B.

3.4.4.1.A. (SBM-3)

3.4.4.1.B.

3.4.4.2 (SBM-3)

3.4.4.2.A.

3.4.4.3 (SBM-3)

3.4.4.3.A.

3.4.5.2. (IRO-1)

3.4.5.3.A.

c) Identifying and assessing adverse impacts

3.4.2.4. A. (IRO-1)

3.4.2.3.C. (SBM-3)

3.4.3.1.A. (IRO-1; SBM-3)

3.4.3.2.A. (IRO-1)

3.4.3.3.A. (IRO-1)

3.4.3.4.A. (IRO-1)

3.4.4.1.A. (SBM-3)

3.4.4.1.C.

3.4.4.2 (SBM-3)

3.4.4.2.A.

3.4.4.3.A.

3.4.5.2. (IRO-1)

3.4.5.3.B.

d) Taking actions to address adverse impacts

3.4.3.1.C.

3.4.3.1.A

3.4.3.2.C.

3.4.3.3.C.

3.4.3.4.C.

3.4.4.1.C.

3.4.4.2.B.

3.4.4.3.B.

3.4.5.3.A.

e) Tracking the effectiveness of these efforts and communicating

3.4.3.1.C.

3.4.3.1.D.

3.4.3.2.D.

3.4.3.3.D.

3.4.3.4.D.

3.4.4.1.E.

3.4.4.2.C.

3.4.4.3.C.

3.4.5.3.C.

3.4.2.2.D. Risk management and internal controls over sustainability reporting (ESRS 2 GOV-5)

The risk management and internal control processes over financial reporting which are currently in place, have started to be applied to the sustainability reporting process and will be gradually further deployed in the coming years. ST is leveraging the COSO framework to establish internal controls over sustainability reporting ("ICSR") following the publication on March 30, 2023, of an interpretive report by COSO.

During 2025, ICSR were formalized with the design and execution of internal controls at corporate and local levels, covering environmental and social data in the sustainability statement along with the EU Taxonomy indicators. The features covered relate to completeness, integrity and accuracy of the data as well as the estimates.

Prioritization was notably set on completeness and reconciliation with the financial statements. The findings of the internal controls deployed were discussed internally with the relevant functions at local and corporate levels.

The progress made on the development of the ICSR framework has been reported to the Sustainability Statement SteerCo throughout 2025. In the coming years, ST will continue to expand the coverage and integrate the evaluation of the effectiveness of our internal controls and procedures and correspondingly inform our Audit Committee on the results of such evaluations.

3.4.2.3 Strategy (ESRS 2 SBM)

3.4.2.3.A. Strategy, business model and value chain (SBM-1)

Strategy relating to or affecting sustainability matters

Our strategy focuses on sustainable long-term value creation for the Company and its affiliated enterprises and takes into account the evolution of the markets we serve and the environment and opportunities we see. Our strategy stems from the following key long-term trends in electronic systems that drive the evolving requirements of our customers and our solutions across the four end markets we address (Automotive; Industrial; Personal Electronics; and Communications Equipment, Computers and Peripherals):

•smart mobility – providing innovative solutions to help car manufacturers make driving safer, more energy efficient and more connected;

•power and energy - delivering technology and solutions for power and energy management enable customers to increase energy efficiency everywhere and support the use of renewable energy sources; and

•cloud-connected autonomous things – supporting the proliferation of secure, connected, autonomous devices enabled by edge AI.

Our value proposition for our various stakeholders is:

•for our shareholders – returning value in line with our objectives, by working towards sustainable and profitable growth;

•for our customers – providing differentiating enablers, using an independent, reliable and secure supply chain; and

•for all stakeholders – committed to sustainability and upholding our values of integrity, prioritizing people and excellence.

As an IDM, we design, manufacture, and sell semiconductor devices. We handle most manufacturing in-house and tightly integrate our technology and product development with our manufacturing operations while providing our customers with the capacity, flexibility, and quality they need. Most of our employees are based in Europe - specifically Italy and France - as detailed in the table titled 'Overview by country' included in Section 3.4.4.1.E.2. (Metrics - Characteristics of the undertaking’s employees).

Further details of our products and product groups can be found in Section 2.3. (Product information).

One of the main future challenges we foresee in relation to our sustainability matters is increased, dynamic and rapidly evolving sustainability regulatory requirements in areas such as water consumption and the use of hazardous substances. This could create challenges in terms of resources, operations and our manufacturing processes. Within our sustainability programs and dedicated actions, we have set up

specific projects to address these challenges and constantly monitor developments in this regard and how to effectively respond hereto.

Our business model and value chain

Our business model and value chain are presented in the below graph.

Our value chain is a comprehensive process that involves multiple stages, each contributing to the creation of high-quality semiconductor devices. Our three broad value chain sections are described as follows:

•Upstream value chain:

◦suppliers - ST purchases raw materials, equipment, energy, gas, chemicals, and services from many suppliers.

◦subcontractors - ST utilizes external silicon foundries and OSATs (together "subcontractors") to supplement its capacity in front-end manufacturing, electrical wafer sorting, and back-end manufacturing. These subcontractors help manage demand and expand production capabilities.

•ST own operations: ST is an IDM that designs, develops, manufactures, and markets a broad range of products used in a wide variety of applications for the four end-markets it addresses. ST's in-house operations include:

◦R&D concept and design: New products are created in a multi-step process including architecture conception, electrical layout, electrical and logic simulation, chip layout, and generation of the masks that will be used to etch the design in silicon.

◦front-end manufacturing: Manufacturing chips requires around 400 separate stages, starting with a plain wafer and resulting in the etching of several hundreds to thousands of dies.

◦electrical wafer sorting: Dies on the wafer are electrically tested to check that they meet the required specifications. This step is known as wafer sort or probe.

◦back-end manufacturing: The dies are cut from the wafer before being assembled in a package. The chips are then tested again prior to delivery to the customer, ensuring they are functional and reliable.

•Downstream value chain (distributors and customers):

◦product use and end of life (downstream value chain - distributors and customers). We offer a large portfolio of products suitable for the wide range of applications addressed by our customers. This stage includes distributing products to customers and ensuring that products meet the needs of various applications.

3.4.2.3.B. Interests and views of stakeholders (SBM-2)

Our diverse range of stakeholders can affect or be affected by our activities and products in different ways. Our key stakeholders are: employees, customers, suppliers (including supply chain workers), subcontractors (including their workers), investors and affected communities. Regular engagement with internal and external stakeholders is essential to assess their expectations.

We aim to maintain open communication and actively listen so we can integrate their feedback into our decision-making, as appropriate. We seek to integrate the interests and views of our stakeholders into our strategy and business model as they are taken into account when defining our sustainability strategy, ambitions, policies, programs and targets. Every year, we aim to review our sustainability materiality based on, amongst others, stakeholder feedback and external trends to anticipate changes and include stakeholder expectations in our considerations, through a DMA in accordance with the ESRS. The Sustainability Committee is responsible for reviewing stakeholders' feedback related to sustainability and through the DMA governance, the Executive Committee, Audit Committee and Supervisory Board are informed of the results of the stakeholder consultation.

In 2025, for the DMA, we consulted our stakeholders to:

•identify the sources of their interests and concerns;

•collect additional perspectives and support the identification and assessment of IROs; and

•check the completeness of the identified material sustainability matters.

The answers provided by our stakeholders were reviewed and analyzed and were considered in the DMA through which we identified the Company’s material sustainability matters.

For further details on the 2025 DMA reference is made to Section 3.4.2.4.A. (Impact, risk and opportunity management).

Our stakeholder engagement varies across our sites and all levels of the Company. Sites conduct specific actions depending on their activity, size, location and local culture. ST sites have regular exchanges with local stakeholders.

At corporate level, we conduct surveys as part of the double materiality exercise, involving all categories of stakeholders, covering pre-identified sustainability topics and giving stakeholders the opportunity to suggest additional topics they deem important.

Specifically with regard to our employees, we also conduct a biannual general engagement survey and a biannual survey on specific topics, gathering and responding to their feedback.

The table below lists certain main topics of interest identified through the 2025 surveys and examples of various types of engagement per category of stakeholder group:


ST stakeholder group	How we gather feedback	Highest rated topics from 2025 stakeholder consultation
Employees, employee representatives	Employee surveys and workshops training, intranet with global and local content	Employees: Own workforce: health and safety, pollution of air, water, soil, climate change mitigation Own workforce: human rights. Own workforce: equal treatment and opportunity for all Employee representative: climate change mitigation, water management Own workforce: labor rights and working conditions and human rights, corruption and bribery
Customers	Trade shows and technology days seminars, conferences, workshops site visits, meetings, audit	Climate change mitigation, Own workforce: Human rights, corruption and bribery Own workforce: health and safety, pollution of air, water, soil
Investors, analysts, shareholders	Capital market days regulatory filings and reports ESG questionnaires and meetings	Climate change mitigation, energy Biodiversity: impact and dependencies, climate change adaptation Own workforce: labor rights and working conditions
Suppliers	Adherence to ST business ethics and responsible business conduct and compliance with RBA code of conduct, training, audits and interviews, supplier events	Supplier relationship management Own workforce: health and safety Workers in the value chain: health and safety, climate change mitigation, pollution of air, water, soil
Media	Press releases and interviews conferences and conventions social networks, website	Artificial intelligence Own Workforce: data privacy Workers in the value chain: data privacy, energy Affected communities: civil and political rights
Affected communities	Local partnerships conferences, conventions, making donations, training, volunteering, local initiatives	Water management, climate change adaptation, climate change mitigation Own workforce: health and safety Own workforce: equal treatment and opportunity for all


Non-profit organizations	Local partnerships conferences, conventions, making donations, training, volunteering, local initiatives	Waste management, artificial intelligence, own workforce: health and safety, workers in the value chain: health and safety, climate change adaptation
Industry associations	Public-private partnerships activities Participation in industry consortiums and working groups meetings, conferences, seminars	Pollution of air, water, soil, waste management, responsible mineral sourcing, energy, management of hazardous materials
Schools, research and academic institutions	Internships, scholarships, PhDs joint R&D projects, joint labs conferences, technical seminars	Climate change mitigation Own workforce: health and safety, energy, corruption and bribery, management of hazardous materials
National and local authorities*	Partnerships with municipalities correspondence and visits annual report	Climate change mitigation, climate change adaptation, pollution of air, water, soil. Management of hazardous materials, water management

While we have various engagements with our stakeholders, we routinely seek ways to improve our processes. In 2025 we standardized stakeholder engagement throughout the Company and deployed a more structured and effective stakeholder engagement method, specifically regarding sustainability topics, across relevant ST departments and sites. The main principles of this enhanced structured stakeholder engagement are described in the Stakeholder Engagement Policy available on st.com.

Relevant ST sites have completed a mapping exercise to identify their local stakeholders. Subsequently, these sites will implement stakeholder engagement approaches taking into account local priorities and needs and will actively engage with their priority stakeholders to foster meaningful dialogue and collaboration. In 2025, relevant ST departments regularly engaged with various stakeholders. Quarterly meetings are held with Corporate Sustainability to review updates, inputs and stakeholder expectations.

3.4.2.3.C. Material impacts, risks and opportunities and their interaction with our strategy and business model (SBM-3)

The IROs regarding environmental, social and governance sustainability matters, identified and assessed as material through the 2025 DMA are listed and described in more detail in Appendix 11.4. (IRO Tables (SBM-3)).

Current and anticipated effects of material IROs on our business model, value chain, strategy and decision-making are detailed in the description of each IRO (refer to Section 3.4.2.4. (Impact, risk and opportunity management)). The IRO description also details how material impacts affect people or the environment. Our response to these effects is embedded in our long-term sustainability targets, associated programs and related key actions detailed in this sustainability statement.

Our strategy and business model currently address material negative impacts and risks, and allow the Company to take advantage of material opportunities. The connection between identified impacts, risks and opportunities, and our business model and strategy is made through our sustainability target-setting process. The resilience of our strategy and business model regarding our capacity to address material impacts and risks seize material opportunities will be regularly assessed by monitoring targets (insofar such targets have been set) and associated programs or related key actions. This assessment is conducted through regular tracking of the Company's progress towards reaching its targets, at least annually. Furthermore, this assessment is conducted by performing an annual evaluation of targets against outcomes of the annual DMA, ensuring that identified material IROs are effectively addressed via existing targets, programs and/or actions, taking into account the relevant time horizons applied in the DMA for the material IROs. Based on these assessments, the Company updates targets and associated programs and/or actions as appropriate to support the resilience of our strategy and business model.

Based on the 2025 DMA, the Company has not identified any short-term material risks or opportunities, therefore, there are no related current financial effects to report.

3.4.2.3.D. Disclosure Requirements in ESRS covered by ST’s sustainability statement (IRO-2)

The sustainability disclosures included in this sustainability statement have been considered relevant based on their significance in explaining ST's approach to sustainability and our management of the material IROs assessed in the 2025 DMA.

A table showing the disclosure requirements covered by the sustainability statement is included in Appendix 11.1. A table showing the data points derived from other EU legislation is included in Appendix 11.2.

3.4.2.4. Impact, risk and opportunity management

3.4.2.4.A. Description of the process to identify and assess material impacts, risks and opportunities (IRO-1)

Introduction

As a fundamental element of our preparation for the CSRD reporting, we have performed a DMA pursuant to the ESRS.

At ST, ERM is designed and implemented to enable the Company to set and execute its strategy by identifying, evaluating and treating specific risk scenarios while capitalizing on opportunities. We recognize the need to support coherence between the assessment and management of different types of risks, including the sustainability-related risks. Therefore, we have adopted the ERM process in the DMA and leveraged our ERM methodology, which has been further developed and adjusted as necessary to accommodate ESRS specificities.

Material risks identified in the DMA are embedded in the Company priority risk map, which is updated annually. Based on our ERM methodology, risks are prioritized based on the combination of criticality and possible improvement to be implemented (i.e. whether and how additional mitigation measures should be implemented). In the coming years, ST will assess how to more explicitly embed material impacts and opportunities as identified through the DMA in the ERM framework.

DMA governance

The DMA process and results were overseen by the Sustainability Statement SteerCo. The results and conclusions were communicated to and approved by the Executive Committee. Finally, the DMA outcome was presented to the Audit Committee of the Supervisory Board, which acknowledged the results.

DMA process

The 2025 DMA process consisted of the following steps:

DMA scope

Based on our business model and taking into account the sustainability topics covered by the ESRS, we identified the following nineteen sustainability matters as relevant for ST, which remain unchanged compared to those identified in 2024:

The nineteen sustainability matters relevant to ST formed the basis for the identification of our impacts on people and the environment, as well as the risks and opportunities to our company.

To conduct a comprehensive DMA, the sub-topics and sub-sub-topics referenced in the ESRS were systematically considered in light of our specific business model, strategy and value chain. IROs were identified considering relevant dimensions including different activities, business relationships and geographies, while leveraging the expertise of our ST subject matter experts.

Moreover, when relevant, interdependencies were identified and documented (e.g., when an impact might be the cause of a risk or an opportunity). Dependencies on the availability of natural and social resources were also identified and documented for each IRO.

Our value chain is summarized in the below chart, while a detailed overview of our value chain is included in Section 3.4.2.3.A. (Strategy, business model and value chain).

Leveraging stakeholder consultation

Further to the general description on ST's stakeholder engagement (Section 3.4.2.3.B. Strategy - Interests and views of stakeholders), this section refers to the specific role of stakeholder engagement as part of the DMA. ST engages with stakeholders to identify the sustainability matters that are most significant to them.

The main objectives of the stakeholder consultation were to:

•collect additional perspectives to support the identification and assessment of material impacts, risks and opportunities; and

•ease the identification of stakeholder’s sources of interest and concerns.

Moreover, the stakeholder consultation supported the completeness of the identified relevant sustainability matters.

The stakeholder consultation was conducted leveraging a variety of channels:

•a selection of external stakeholders (customers; industry associations; investors, analysts and shareholders; national and local authorities; non-profit organizations; schools; research and academic institutions; affected communities; and suppliers) were directly consulted through a dedicated survey;

•internal stakeholders (comprising of different categories of ST management and employees) were also directly consulted through a dedicated survey;

•a data analytics platform was leveraged to conduct a research-based consultation collecting additional inputs from a wide range of media; and

•inputs from non-profit organizations, media and schools, research and academic institutions were used to embed silent stakeholders' views in the consultation outcome. Silent stakeholders are those who may not actively voice their opinions (e.g., nature) but could be impacted by our activities.

Both the survey-based and research-based consultations covered the ESRS topics.

In processing the outcome of the stakeholder consultation, each above-mentioned stakeholder group was assigned a weight based on its ability to influence ST decisions and the representativeness of the responding group. These weights were applied to the views expressed by each stakeholder group on individual sustainability matters to produce an overall ranking of stakeholder perceptions by sustainability matter.

Overall, the stakeholder consultation outcome was consistent with our internal DMA. The topics evaluated at high score by our stakeholders were also assessed as material in the 2025 DMA, confirming alignment between their views and our DMA outcome.

Leveraging the DMA methodology and a thorough assessment of impacts, risks, and opportunities, ST proactively identified additional material sustainability matters that were not indicated as material by our stakeholders.

Preliminary IROs review

In 2024, based on our ESRS topical review, knowledge of our value chain and business, an understanding of stakeholder perceptions and the information we obtained during our 2023 preparations for CSRD reporting, we identified an initial list of IROs clustered into our nineteen sustainability matters, which was then reviewed with our ST subject matter experts.

As part of our 2025 improvement efforts, we undertook a rationalization process to enhance the conciseness and clarity of the list of IROs (which included, amongst others, rewording of certain IROs). and drafted a baseline for IRO quantification by leveraging available internal and external information.

Leveraging subject matter expertise

As in 2024, we leveraged the expertise of our ST subject matter experts in 2025 to review the IROs list and DMA scope and conclude on IROs materiality. These experts contributed throughout the DMA process by providing their expertise and relevant qualitative and quantitative information to support the IRO assessment.

Assumptions and approach for IROs quantification and assessment were formalized and the DMA outcome was subsequently presented and discussed in dedicated ESG workshops with ST subject matter experts from the relevant departments.

Additional consistency checks and review

Following the workshops, we conducted further reviews and consistency checks, and finalized the list of IROs and their respective assessments.

Validation

The 2025 DMA results and conclusions were communicated to and approved by the Executive Committee. The 2025 DMA results were ultimately presented to the Audit Committee of the Supervisory Board which acknowledged the results.

ERM-aligned DMA methodology

IRO assessments: general principles

The methodology for both the impact and financial materiality is consistent with our ERM framework.

The identified actual (negative and positive) impacts on people and the environment were assessed based on magnitude of impact (four levels from low to very high).

The identified potential (negative and positive) impacts on people and the environment, as well as the risks and opportunities for the Company were assessed based on the two following criteria:

•likelihood of occurrence: four levels from unlikely to almost certain likelihood; and

•magnitude of impact: four levels from low to very high magnitude.

The combination of likelihood and magnitude provided four degrees of materiality, which are represented in the criticality matrix, with a color code ranging from white to dark blue.

The IROs in the dark blue area are deemed material for the purpose of the CSRD.

The below matrix is an illustration of such criticality matrix.

Methodological specificities

Both for impact and financial materiality, IROs were assessed on a residual basis (i.e. taking into account existing mitigating measures).

Assessments were performed across different time horizons, ranging from short-term (within the current reporting year) and mid-term (from one to five years) to long-term (beyond five years), with the exception of climate-related IROs for which the time scale was extended with long term defined as beyond ten years.

Any IROs not assessed as material on a residual basis across the three-time horizons, were further assessed on an inherent basis (i.e., without taking into account the existing mitigating measures). Inherent assessments were performed over a long-term time horizon therefore considering the highest cumulated effect.

Regarding the impact materiality, the magnitude of (negative and positive) impacts on people and the environment was assessed using a combination of the following sub-criteria:

•scale: how grave the negative impact is or how beneficial the positive impact is for people or the environment;

•scope: how widespread the negative or positive impacts are; and

•irremediable character: the extent to which the impact can be remediated (for negative impacts only).

In 2025, in line with our ongoing improvement efforts, we worked on establishing a baseline for quantifying the IRO assessments. The magnitude of impacts, risks and opportunities, was assessed using both quantitative and qualitative considerations based on the available information and data.

As required by the ESRS, the quantification of risks and opportunities aimed to identify their potential financial impacts on our activities. Assumptions and approaches for quantifying each IRO and related assessment were formalized and documented.

Where relevant, available insights from internal data and/or from our existing due diligence process with regard to the value chain (e.g., in the context of the RBA, further described in Section 3.4.4.2.A. (Policies related to supply chain workers) were leveraged in the assessment process.

From a quantitative standpoint, the estimated financial magnitude of risk and opportunities towards ST was determined and assessed based on their potential effects on the Company net income.

We followed the ESRS-defined methodological exceptions, in particular in relation to potential negative human rights impacts. Based on these exceptions, the magnitude of the impact takes precedence over its likelihood.

Combining impact and financial materialities to obtain the double materiality

Impact and financial materialities were combined in the following manner:

Each sustainability matter was positioned on the above impact or financial materiality matrix based on its highest-rated IRO. Ultimately, a sustainability matter was considered to be material when at least one IRO was assessed as material.

In the final double materiality matrix, any sustainability matter positioned in the dark green area is deemed material, whether from an impact materiality standpoint, a financial materiality standpoint, or both.

DMA results

In 2025, thirteen out of the nineteen sustainability matters related to ESRS E1, E2, E3, E5, S1, S2, S3 and G1 were assessed as material as outlined in the following table and matrix. The same thirteen sustainability matters were assessed as material in 2024.

Four of these thirteen material sustainability matters were assessed as material on an inherent basis: "Own workforce: Health and Safety," "Own workforce: Equal treatment and opportunities for all," "Whistleblowing," and "Corruption and Bribery". On a residual basis, considering the mitigating measures and programs already in place, these four sustainability matters were assessed as non-material.

The remaining nine material sustainability matters remained material on a residual basis, as in 2024.

Six of these nineteen sustainability matters were assessed as non material: Biodiversity; Workers in the value chain: Health and Safety; Workers in the value chain: Equal treatment and opportunities for all; Consumers and end users; Supplier relationship management; and Political engagement and industrial association.

The tables outlining the 2025 DMA material IROs, along with the associated programs, dedicated actions, and (entity-specific) targets set to address these IROs, are included in Appendix 11.4.

* = Sustainability matters material on an inherent basis (while not material on a residual basis)

3.4.3. Environment

ST is dedicated to managing its business in an environmental responsible way. This section outlines our material IROs, approach, policies, actions and targets in this regard, focussing on climate change, pollution and chemicals, water and waste.

Approach to environmental responsibility

As an IDM, we handle most manufacturing in-house and also outsource part of the manufacturing to our subcontractors. The manufacture of semiconductor devices requires natural resources, water, energy and chemical substances, and can have a negative impact on the environment. Minimizing our overall environmental footprint is a priority for ST, our strategy and business model take into account managing our greenhouse gas emissions, energy use, chemical use, water consumption and waste generation.

Policies

Our approach to the environment is laid out in our Global Environmental Policy, which includes our Global Water Policy, and is incorporated into our strategy. This policy is available on st.com and is applied at global level and applicable to all ST entities and all ST employees. For an overview of relevant policies reference is made to the policy overview table in Appendix 11.7.

Our Global Environmental Policy details, inter alia, our ambition to reduce our negative environmental impacts, and risks arising from our own operations and those of our suppliers and utilize environmental opportunities through various key actions, and states various of our goals, such as to:

•maintain an environmental management system based on standards and proven practices throughout the Company;

•implement control measures and audits to check that appropriate environmental procedures are carried out and to identify and prioritize areas for improvement;

•maintain relevant environmental certifications for all our manufacturing and large R&D sites worldwide;

•comply with environmental regulations and other requirements globally and locally;

•pursue improvement in our environmental performance;

•provide appropriate training for our employees and provide all necessary information to our stakeholders; and

•develop long-term partnerships with suppliers committed to responsible environmental standards and practices.

Our Global Water Policy, embedded in our Global Environmental Policy, more specifically, details our ambition to manage water-related impacts, including impacts of water pollution, through various key actions, such as:

•applying water governance at all manufacturing sites, including water use, discharge, quality, and regulatory compliance; and

•regularly evaluating water flows and water balance.

Governance

Our CHRO is accountable for the implementation of the Global Environmental Policy implementation. Various dedicated teams are involved in the implementation of the Global Environmental Policy, such as

corporate environmental team regarding, amongst others, the development of programs and procedures that enable us to work towards our environmental objectives, local ST site sustainability committees regarding, amongst others, the development of a roadmap based on the needs of their respective sites and CCFS regarding, amongst others, the implementation of relevant actions.

Our manufacturing sites have an EHS steering committee responsible for implementing the Global Environmental Policy. Each EHS steering committee includes representatives from various relevant departments and meets regularly to review relevant topics, such as environmental performance and/or compliance with local and national environmental standards and requirements. The outcomes of these reviews are shared with site management and appropriate actions are implemented where necessary.

ST environmental management system

Our environmental management system is aligned with international standards, including ISO 14001 and ISO 50001. Our performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. Our main manufacturing sites are certified.

ISO 14001 is an internationally recognized framework that helps organizations improve their environmental performance. It establishes a systematic approach for organizations to improve energy efficiency and decrease GHG emissions, reduce and recycle waste, conserve water, and control pollutants. This framework encourage improvement in environmental performance and compliance with environmental regulations and best practices. ISO 50001 sets a standard for energy management, improving energy efficiency and reducing related consumption, thereby contributing to climate change mitigation.

Availability of policy

ST’s employees, suppliers, partners and other stakeholders are key stakeholders in the Global Environmental Policy, which includes our Global Water Policy, and required for its successful implementation. Training and information sharing sessions are deployed. Our Global Environmental Policy is available on st.com for everybody, including potentially affected stakeholders and stakeholders who need to help implement it, and All ST's environmental procedures implementing the policy commitments are available to ST’s employees via our internal platforms.

3.4.3.1. Climate change (E1)

Climate related IROs (SBM-3)

The following table lists the IROs related to climate change we have identified and assessed as material in our 2025 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

E1 – Climate change mitigation

Description

Type of IRO

Actual/

Potential

Value chain

segment

Time horizon

Material on a residual(1) or inherent(2) basis

ST response

Targets

Negative impact from ST on the environment due to its GHG emissions, contributing to climate change

Negative impact

Actual

Own operations

Short term

Residual basis

ST’s decarbonization program

We aim to achieve a 20% overall reduction in absolute scope 1 and 2 emissions by 2030 versus 2024.

We aim to abate at least 90% of our CAPG emissions by 2030 (entity-specific).

We aim to achieve a 10% reduction in our Scope 3 upstream GHG emissions by 2030, and a 20% reduction by 2035, versus 2024.

Negative impact from suppliers on the environment due to their GHG emissions, contributing to climate change

Negative impact

Actual

Upstream

Short term

Residual basis

ST’s decarbonization program

Negative impact from foundries and OSATs on the environment due to their GHG emissions, contributing to climate change

Negative impact

Actual

Upstream

Short term

Residual basis

ST’s decarbonization program

Negative impact from GHG emissions generated by distributors and customers activities, and other downstream emissions contributing to climate change

Negative impact

Actual

Downstream

Short term

Residual basis

ST's decarbonization program

No target in place

Risk of increased carbon offsetting needs to deliver ST carbon neutrality commitments by 2027 leading to higher costs, reduced stakeholder engagement (i.e. customers, investors, and talents) and damaging Company's reputation

Transition Risk

Potential

Own operations

Long term

Inherent basis

ST’s decarbonization program

We aim to achieve a 20% overall reduction in absolute scope 1 and 2 emissions by 2030 versus 2024.

We aim to abate at least 90% of our CAPG emissions by 2030 (entity-specific).

We aim to achieve a 10% reduction in our Scope 3 upstream GHG emissions by 2030, and a 20% reduction by 2035, versus 2024.

Risk of ST not being able to influence suppliers to reduce their GHG emissions, affecting ST's scope 3 performance

Transition Risk

Potential

Upstream

Mid term

Residual basis

ST’s decarbonization program

Risk of ST not being able to influence foundries and OSATs to reduce their GHG emissions, affecting ST's scope 3 performance

Transition Risk

Potential

Upstream

Long term

Residual basis

ST’s decarbonization program

Risk of ST not being able to influence distributors and customers to reduce their GHG emissions and downstream emissions, affecting ST's scope 3 performance

Transition Risk

Potential

Downstream

Long term

Residual basis

ST's decarbonization program

No target in place

(1) "Residual" refers to the materiality assessment that takes into account existing mitigation measures.

(2) "Inherent" refers to the materiality assessment without taking into account any existing mitigation measures

E1 – Climate change adaptation

Description

Type of IRO

Actual/

Potential

Value chain

segment

Time horizon

Material on a residual(1) or inherent(2) basis

ST response

Targets

Risk of natural catastrophes due to chronic and/or acute climate-related events damaging ST assets and / or local infrastructures in the vicinity (esp. utilities), leading to business interruption

Physical

Risk

Potential

Own operations

Long term

Residual basis

ST’s climate adaptation activity

No target in place

Risk of natural catastrophes due to chronic and/or acute climate-related events damaging suppliers' assets and / or local infrastructures in the vicinity (esp. utilities), disrupting ST's operations

Physical

Risk

Potential

Upstream

Long term

Residual basis

ST's responsible supply chain program

No target in place

Risk of natural catastrophes due to chronic and/or acute climate-related events damaging foundries and OSATs' assets and / or local infrastructures in the vicinity (esp. utilities), disrupting ST's operations

Physical

Risk

Potential

Upstream

Long term

Residual basis

ST’s responsible supply chain program

No target in place

Risk of natural catastrophes due to chronic and/or acute climate-related events damaging distributors' and customers' assets and / or local infrastructures in the vicinity (esp. utilities), leading to business loss for ST

Physical

Risk

Potential

Downstream

Long term

Residual basis

ST's climate adaptation activity

No target in place

(1) "Residual" refers to the materiality assessment that takes into account existing mitigation measures.

(2) "Inherent" refers to the materiality assessment without taking into account any existing mitigation measures.

E1 – Energy

Description

Type of IRO

Actual/

Potential

Value chain

segment

Time horizon

Material on a residual(1) or inherent(2) basis

ST response

Targets

Risk of increased energy costs for ST directly due to climate-related factors or indirectly, through increased procurement prices of raw materials, services and products affecting the Company's operating margin

Transition Risk

Potential

Own operations

Long term

Residual basis

ST’s decarbonization program

We aim to adopt 100% renewable electricity by 2027 through energy procurement and renewable energy installations and maintain this percentage each year thereafter.

We aim to annually save energy, achieving cumulative energy savings of 100 GWh by 2035, versus the baseline year 2024 (entity-specific).

Risk of ST not being able to secure ramp-up of electricity share from PPAs contracts or insufficient access to EAC due to increasing demand leading to higher costs and reputational damages

Transition risk

Potential

Own operations

Long term

Inherent basis

ST’s decarbonization program

Opportunity to further reduce ST's energy consumption or benefit from the development of renewable energy sources through PPAs, leading to increased Company's profitability

Transition opportunity

Potential

Own operations

Long term

Residual basis

ST’s decarbonization program

(1) "Residual" refers to the materiality assessment that takes into account existing mitigation measures.

(2) "Inherent" refers to the materiality assessment without taking into account any existing mitigation measures

3.4.3.1.A. Climate-related impacts, risks and opportunities

Addressing climate-related physical risks

For climate-related physical risks, we have commissioned analyses conducted by third parties over the past years in order to understand the implications of climate change in terms of resilience of our strategy and business model.

In 2021, we commissioned a study from an expert third-party (an environmental consultancy firm), which has been a valuable resource to help us understand the characteristics and implications of water scarcity on our operations. Additionally, in 2023, we commissioned an update of a science-based study (the "Climate Study") from an expert third-party to assess the current and future climate risks on 155 assets (including all our main sites and those of our key manufacturing and logistics partners in our supply chain, located in 25 countries).

This Climate Study has provided an overview of the inherent climate-related risks for the assets in scope.

The analysis was based on two climate change scenarios defined by the United Nations Intergovernmental Panel on Climate Change (the "IPCC"):

• an intermediate emissions scenario: SSP2-4.5 (mid-century warming of 1.6 to 2.5°C, end of century warming of 2.1 to 3.5°C versus preindustrial era); and

• a very high emissions scenario: SSP5-8.5 (mid-century warming of 1.9 to 3°C, end of century warming of 3.3 to 5.7°C versus pre-industrial era).

Specifically for each scenario and for each of the 155 assets, climate projections on 2030 and 2050 time horizons show likely evolutions across a range of indicators based on the EU Taxonomy classification of climate-related hazards, which might be temperature-related, wind-related, water-related or solid-mass erosion-related, including more specifically: cyclonic and non-cyclonic wind gusts; coastal and riverine floods; number of heavy precipitation days; freezing conditions such as cold wave duration and number of frost days; extreme heat conditions, including heatwave duration and number of hot days; drought including dry wave duration and water stress; and landslide.

Building on these initial inherent risk analyses, ST has been working to define the methodology and gather additional technical data from an expert third party and ST subject matter experts necessary to assess the residual exposure of its manufacturing infrastructure to heat risks. A pilot analysis of residual exposure to heat risks of one site was completed in 2024. Throughout 2025, we worked to complete the analyses for the remaining sites. Thresholds and indicators are currently being defined to finalize the assessment of residual exposure to heat risks. Based on this assessment, ST will evaluate whether the development of adaptation plans is necessary.

Ultimately, these different climate-related analyses feed our site-level business interruption risk assessments and business impact analyses, as well as our site resilience index.

While the conducted analyses were based on the latest climate modelling techniques, results inherently entail uncertainties in the assessment process.

Addressing climate-related transition risks

Consistent with 2024, our 2025 DMA identified a number of IROs related to the transition to a lower carbon economy.

To identify transition risks and opportunities, we first leveraged the analysis we previously conducted under the TCFD. In this context, we identified transition risks and opportunities around market, policy and regulations, infrastructure robustness, resource efficiency, energy source and image TCFD categories considering potential climate-related transition events. These potential transition events and associated transition risks and opportunities were initially identified based on input from key ST subject matter experts, as well as the key characteristics of our IDM business model.

The identified climate-related transition risks and opportunities were built upon in the 2025 DMA process and further completed and assessed based on quantitative and qualitative considerations including additional input from our subject matter experts and available data and information.

Overall, the potential climate related transition events included potential changes in laws and regulations (e.g., public authorities decisions, new regulations, new carbon pricing mechanisms); supply market dynamics (e.g., evolution of energy prices, availability of renewable energy sources, products, services and raw materials cost variation); end-market dynamics (e.g., customers behaviors versus climate change); and, more broadly, stakeholder perception of our carbon neutrality performance.

From a risk management standpoint, we assessed a climate scenario consistent with the UN Paris Agreement (i.e. strictly limiting global warming to 1.5°C with no or limited overshoot) to be unlikely based on current and evolving environmental context and associated uncertainties.

Simultaneously, regarding transition opportunities, we are actively investing in developing and launching new products which aim to enable sustainability-related applications and devices, as further described in Section 3.4.3.5. (EU Taxonomy Regulation).

Continuous resilience assessment

The resilience of our IDM strategy and business model in relation to climate change will be regularly assessed through the monitoring of related targets.

Climate scenarios for determining material physical and, where relevant, transition risks were evaluated across the short, medium and long-term. Consistent time horizons were considered to set related targets.

Transition plan for climate change mitigation

We have not yet adopted a complete transition plan for climate change mitigation that meets all the elements contemplated by the ESRS. We are continuing to further develop such plan. The following elements of our contemplated transition plan for climate change mitigation were approved by our Executive Committee in 2024, and we are already actively taking steps on these topics, as detailed further below:

•decarbonization of our own operations;

•decarbonization of our supply chain; and

•development of technologies and products that aim to reduce GHG emissions across their life cycle.

Each of these topics are covered in our policies (further details included in Section 3.4.3.1.B. Policies related to climate change mitigation and adaptation), with the actions included and deployed in action plans. We have also set targets on the first two elements: our targets on GHG emissions reduction (further details included in Section 3.4.3.1.C. Actions, targets and resources in relation to climate change policies). These targets and identified decarbonization levers are key elements for us to develop further within our transition plan for climate change mitigation.

We aim to finalize our transition plan for climate change mitigation within the applicable legal framework, in the coming years and we will continue to report on our progress. In 2025, we enhanced our carbon neutrality program to include supply chain decarbonization, strengthening the governance regarding our decarbonization efforts and subsequently renamed the program: decarbonization program.

We are not excluded from the EU Paris-aligned Benchmarks.

3.4.3.1.B. Policies related to climate change mitigation and adaptation

Our approach and policies

Our Global Environmental Policy states our approach to managing environmental impacts, risks and opportunities through various key actions. This policy is available on st.com, for everybody, including potentially affected stakeholders and stakeholders who need to help implement it, and applied at global level and applicable to all ST entities and all employees. Our CHRO is accountable for its implementation.

Climate change mitigation and climate change adaptation are an integral part of our Global Environmental Policy.

To mitigate potential negative impacts on the environment due to GHG emissions in our own operations, our Global Environmental Policy details our aim to minimize our direct GHG emissions, as well as to maintain relevant environmental certifications for all our manufacturing and large R&D sites worldwide and to provide appropriate training and relevant information to our employees. Additionally, it includes our ambition to implement robust internal and external operational controls, and audits to check that environmental procedures are carried out and to identify and prioritize areas for improvement.

To mitigate potential negative impacts on the environment due to GHG emissions in our supply chain, our Global Environmental Policy details our dedication to minimize our upstream GHG emissions, to develop long-term partnership with suppliers that have responsible environmental standards and practices, while regularly engaging with and providing relevant information to our stakeholders.

Regarding the energy-related IROs, the policy states our ongoing objective to manage energy consumption, improve energy efficiency, and source renewable energy.

Finally, regarding climate change adaptation, the Global Environmental Policy states our ambition to define and implement climate change adaptation plans, if necessary, to address relevant climate-related risks.

3.4.3.1.C. Actions, targets and resources in relation to climate change policies

3.4.3.1.C.1. Climate change mitigation

In 2020, we announced our commitment to become carbon neutral by 2027, with an intermediate milestone in 2025, of 50% overall reduction in absolute scope 1 and scope 2 market-based GHG emissions by 2025 versus the baseline year 2018(1), endorsed by the Science Based Targets Initiative ("SBTi").

In 2024 we set an additional target: (i) to achieve a 20% (in absolute: 142 ktCO2eq) overall reduction in absolute scope 1 and scope 2 market-based GHG emissions by 2030 versus the baseline year 2024 ; as well as (ii) the target to achieve a 10% (in absolute: 384 ktCO2eq) reduction in our scope 3 upstream GHG emissions by 2030, and a 20% (in absolute: 768 ktCO2eq) reduction by 2035, versus the baseline year 2024.

We have set the baseline value against which the progress toward the targets is measured, to be representative in terms of site activities covered and the influences from external factors such as emission factors from reference database evolution. Specifically with regard to the target relating to our scope 3 upstream emissions, we have sought to make it representative in terms of procurement activities covered and the influences from external factors, by assessing impacts of future eventual changes, including technology and outsourcing model potential impact related to target time horizon.

Progress toward these targets is monitored quarterly as part of ST's decarbonization program (refer to Appendix 11.10.) and as described in Section 3.4.2.2. (Governance ).

(1) This intermediate milestone is outside of the assurance scope.

These additional targets have not yet been assessed to be science based or compatible with limiting global warming to 1.5 degree. This assessment is ongoing, taking into consideration the current and evolving challenging environmental context and associated uncertainties.

Climate change mitigation: actions and targets to reduce GHG emissions from ST operations (scope 1 and scope 2)

As part of its actions to mitigate climate change within its operations, ST aims to achieve a 20% overall reduction in absolute scope 1 and scope 2 (market based) GHG emissions by 2030 compared with the baseline year 2024.

Scope 1 and Scope 2 GHG emissions reduction target


In tCO2eq	December 31, 2024 (base year)		December 31, 2025		December 31, 2030 (target year)
Total Scope 1 and Scope 2 GHG emissions (1)	709,483		599,878		567,586
Scope 1 and Scope 2 GHG emissions reduction rate	—	%	15	%	20	%

(1) 14 manufacturing sites, 3 R&D sites and 1 EWS site

The total scope 1 and scope 2 GHG emissions decreased by 15% versus 2024, which is ahead of the linear trajectory towards the 20% reduction by 2030. The reduction is attributable to the actions described in the levers sections below. The metrics used as part of this target are the Gross scope 1 GHG emissions and Gross scope 2 GHG emissions, which are described in their respective sections.

The scope for the target includes ST's operation only covering ST's fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9.

As part of this combine scope 1 and scope 2 target, we aim to address the negative impact on the environment, due to GHG emissions linked to our own operations, contributing to climate change, through actions and targets associated with three decarbonization levers:

•decrease climate adverse process gases (“CAPG”) emissions;

•purchase renewable energy; and

•improve energy efficiency.

Progress towards the scope 1 and scope 2 target is monitored using the absolute scope 1 and scope 2 emissions calculated annually. The decarbonization levers are monitored both individually and in relation to the scope 1 and 2 reduction target, as they directly support its achievement. These levers are described in sections below.

Decarbonization lever 1: Decrease climate adverse process gases (“CAPG”) emissions (entity-specific target)

The use of CAPG is inherent to the semiconductor industry, as there are currently no alternative substances for some parts of the semiconductor foundry manufacturing process. CAPG are gases with a high global warming potential used in production processes. ST is collaborating within the semiconductor sector with industry experts, partners and suppliers to find technical solutions for decreasing the quantities of CAPG used in our industry or replacing GHG intensive CAPG with lower GHG intensive ones.

The GHG emitted by the use of CAPG accounts for the highest share of our direct GHG emissions (scope 1). It is therefore a central part of our environmental strategy to reduce their use and to ensure that they are treated appropriately before being released into the atmosphere.

CAPG abatement related target


In tCO2eq	December 31. 2024 (base year)		December 31, 2025		December 31, 2030 (target year)
CAPG abatment rate (in %)	76	%	83	%	90	%

ST aims to abate at least 90% of its CAPG GHG emissions by 2030 versus 2024, by installing point of use CAPG abatement systems in our manufacturing sites. In 2025 we abated 83% of CAPG related GHG emissions, compared to 76% in 2024, covering our fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9. This increase of CAPG abatement rate reflects the investment effort and the installation of new abatement systems, notably in Ang Mo Kio (Singapore) and Catania (Italy). It also indicates that progress is in line with the planned trajectory toward the 2030 target.

These abatement systems treat and destroy CAPG molecules before emission in the air, thus decreasing the GHG impact of our manufacturing process. This entity-specific target is based on conclusive scientific evidence, as the impact of CAPG abatement systems on GHG emissions from CAPG is defined in the IPCC-2019 standard and Appendix 11.6.

The CAPG abatement rate is defined as the difference between emissions without abatement systems and emissions with abatement systems, divided by emissions without abatement systems, expressed in percentage. The 90% abatement ratio has been calculated simulating the effect of all new abatement systems planned to be installed by 2030. Our target is aligned with the current sectorial guidance from the World Semiconductor Council (WSC), which has committed to achieve a PFC reduction rate of 85% by 2030. The definition of the target is based on the current status of ST's business.

Progress toward the target is tracked through a dedicated decarbonization program, which includes a workstream focused on CAPG abatement systems installation. On a quarterly basis, this ST program team reviews the thermal process unit (TPU) installation plan, assesses progress against the abatement trajectory, and identifies any corrective actions needed to stay on track for the 2030 target.

The GHG reduction associated with this lever is estimated to represent around half of the total emission reductions of our Scope 1 and 2 reduction target between 2024 and 2030. It is therefore one of the two principal levers driving decarbonization in our own operations. The methodology to compute the GHG emission is further described in Section 3.4.3.1.D. (Metrics related to climate change mitigation and adaptation - Gross scope 1 GHG emissions from the consolidated accounting group).

Decarbonization lever 2: Purchase renewable energy

Our second lever on GHG emission reduction in our own operations is sourcing renewable energy, in order to decrease our scope 2 market-based GHG emissions. We aim to transition to 100% renewable electricity sourcing by the end of 2027 and maintaining this percentage each year thereafter. This target is based on conclusive scientific evidence on the impact of renewable energy on GHG emission.

The main actions to reach 100% of renewable electricity procurement by 2027 are:

•define and follow a roadmap to increase the share of renewable electricity through PPAs. In 2025, two new PPAs began supplying renewable electricity to ST, in France and in Italy. One PPA will begin in 2026, in Malaysia;

•procure unbundled EACs. We manage and monitor an annual roadmap, budget and action plan for our Global Procurement Organization to procure EACs on all relevant locations; and

•whenever possible, implement onsite installations for renewable energy production. Two sites are planned to benefit from such installations in the coming years.

Renewable electricity rate


In percentage	December 31, 2024 (base year)		December 31, 2025		December 31, 2027 (target year)
Renewable electricity rate	84	%	86	%	100	%

The percentage of renewable electricity is the ratio between the total renewable electricity and the total electricity consumption. Our baseline 2024 value for renewable electricity is 84%, renewable electricity sourced in 2025 is 86%. This increase reflects the new PPA's providing renewable electricity (see above) and new Green electricity contracts.

This ratio is reviewed quarterly and our progress is in line with our 2020 commitment to reach carbon neutrality by 2027 with 100% electricity coming from renewable sources. The performance trends are stable with no significant changes identified towards achieving our target.

Renewable electricity means purchased or self-generated electricity coming from recognized renewable sources, such as solar, wind, hydro or geothermal. We consider as renewable electricity, electricity sourced through renewable contractual instruments signed by ST: onsite electricity generation from solar panel, renewable PPA, Green electricity contracts and unbundled EAC.

The scope for this energy target includes ST's operations only, covering ST's fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9.

The GHG reduction associated with this lever is estimated to represent around half of the total emission reductions of our Scope 1 and 2 reduction target between 2024 and 2030.

Decarbonization lever 3: Improve energy efficiency (entity-specific target)

ST is investing in energy savings projects, in order to improve energy efficiency, and to reduce our scope 1 and 2 GHG emissions. ST also takes decarbonization actions in its own operations by implementing energy conservation projects, that improve energy efficiency at equivalent production levels, by monitoring energy consumption and productions, and regular maintenance and upgrade of its facilities equipment in ST manufacturing sites.

In this regard ST set an entity-specific target to annually save energy, achieving cumulative energy savings of 100 GWh by 2035, versus the baseline year 2024.

Energy savings target


In Gigawatt-hour	December 31, 2024 (base year)	December 31, 2025	December 31, 2035 (target year)
Energy saving (Cumulative)	—	14	100

Implementation of energy conservation projects started in 2025. As of 31 December 2025, the energy savings achieved amount to 14 GWh. ST considers this performance to be in line with the target pathway, as only completed projects are included in the reported savings.

ST follows these projects closely throughout their lifecycle (pre‑execution, execution and post‑execution). The typical process includes:

•project identification at site level (including feasibility studies and metering requirements);

•project completion at site, including installation and commissioning;

•once the site has completed the project and can share metered or calculated data, ST adjusts the initial savings projection based on actual performance; and

•start of counting when the measurement instrument (e.g., meter or monitoring system) is fully operational and capable of providing reliable data.

Projects are accounted for only when they are considered complete with the right measurement capabilities in place, and savings are reported for a full year after completion. For example, if a project is completed on 30 September 2025 and the associated metering is ready to calculate savings, the savings are recorded from Q4 2025 until the end of Q3 2026, it means in the above table, and in this case, only one quarter of saving would be accounted for, and the remaining quarters will be accounted for in the next reporting period.

The energy saving target relates to the absolute volume of energy consumption saved annually and has been set by taking into account the list of energy conservation projects included in sites' budget plan, accordingly, a cumulative saving of 100 GWh by 2035, versus the baseline year 2024, has been estimated. The baseline value is zero. In defining the target the following main assumption has been taken into account: that there will be no significant change in facilities installations, which negatively affects the execution of the intended actions needed to reach the target.

The scope for this energy target includes ST's fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9.

The GHG reduction associated with this lever contributes to a lesser extent to the total emission reductions required to achieve our combined Scope 1 and 2 reduction target between 2024 and 2030.

In order to reach this energy saving target by 2035 we are taking the following actions:

•we conduct regular maintenance on our facilities equipment and arrange expert third-party review of our assets to identify opportunities for improvement of energy efficiency;

•install digital monitoring systems for energy in all our manufacturing sites; to ensure that energy consumption and the effect of savings projects can be properly tracked and measured;

•arrange regular ISO 50001 certification audit and certification by a third-party of our main manufacturing sites, to validate that an adequate energy management system is in place and that annual optimization targets are set in each of those sites;

•create a company roadmap for energy saving, with a fixed cumulative target of 100 GWh by 2035. Monitor progress monthly to ensure full alignment and make adjustments as needed, and

•conduct annual projects to assess and upgrade the least energy efficient facilities equipment, whereby the annual investment for this reporting year is included in section Financial resources related to climate change below.

New installations that bring energy savings are followed through meters and digital monitoring systems. Energy savings are maintained over the expected life of the equipment. The methodologies used to estimate savings are based on calculations and metered data under ST’s energy management system (including ISO 50001‑certified sites).

Climate change mitigation: actions and targets to reduce GHG emissions from ST supply chain (scope 3)

Complementing ST actions to mitigate climate change within its own operations, ST aims to work with its partners in its supply chain to encourage them to reduce their GHG emissions.

ST has launched a supply chain decarbonization program aimed at reducing scope 3 emissions associated with the purchase of goods and services. ST identified its 50 highest-emitting tier-1 suppliers, as well at its top subcontractors for wafer foundries and backend packages, and initiated engagement with them under this program.

For overall reduction of our carbon footprint, the scope includes goods and services suppliers of ST, procurement being accounted in scope 3.1 and scope 3.2. ST aims to achieve a 10% reduction in its scope 3 upstream GHG emissions by 2030, and a 20% reduction by 2035, versus the baseline year 2024. The scope of the reduction target is identical to the inventory of the carbon footprint calculation for scope 3.1 to scope 3.8 categories. with specific focus on decarbonization on goods and services procurement (scope 3.1 and 3.2 categories). This target is based on conclusive scientific evidence, namely using IPCC.

This target is set based on, amongst others:

•the GHG Protocol Guidance for scope 3 calculation to manage carbon accounting for scope;

•a review of our suppliers' public targets on GHG reduction by 2030; and

•the strategy and roadmap for the decarbonization of our supply chain.

Scope 3 upstream GHG emissions reduction target


In tCO2eq	December 31, 2024 (base year)	December 31, 2025 (actual)		December 31, 2030 (target)		December 31, 2035 (target)
Total scope 3 GHG emissions (1)	3,837,356	3,648,510		3,453,620		3,069,885
Scope 3 GHG emissions reduction rate	—	5	%	10	%	20	%

(1) Consolidated perimeter for scope 3.1, 3.2, 3.4, 3.6 and 14 manufacturing sites, 3 R&D sites and 1 EWS site for scopes 3.3, 3.5 and 3.7

As of December 31, 2025, the reduction rate observed is driven by business effects, as the actions described below require time to deliver full impact. For methodology refer to Section 3.4.3.1.D. (Metrics related to climate change mitigation and adaptation - Gross scope 3 GHG emissions).

To meet this target by 2035, ST has identified three levers and takes the following actions:

Lever 1: review and reduce GHG emissions from our top five subcontractors for wafer foundries and backend packages

An assessment of subcontractors for their GHG impact and GHG reduction roadmap has been completed, giving ST an understanding of its suppliers' maturity and roadmap towards reducing their GHG emissions.

In 2025, ST shared its long‑term decarbonization goals with its top subcontractors for wafer foundries and for backend packages. ST also requested these subcontractors to provide annual information on their climate change mitigation performance.

The GHG reduction associated with this lever is estimated to account for a significant but not dominant share of the total emission reductions required to achieve our Scope 3 GHG reduction target by 2030, representing roughly one quarter of the expected Scope 3 reductions.

Lever 2: review and reduce GHG emissions from top fifty goods and services suppliers

An assessment of goods and services suppliers for their GHG impact and GHG reduction roadmap has been completed, giving ST an understanding of its supplier maturity and roadmap towards reducing their GHG emissions.

In 2025 ST shared a decarbonization engagement charter to its top 50 most GHG emissive suppliers, (based on 2023 data) with a large majority of them endorsing it. This charter focuses on six main areas, including climate performance disclosure, SBTi‑aligned targets, increased use of renewable energy, product carbon footprint data sharing, circular‑economy solutions, and solutions that help reduce ST’s direct emissions.

This lever is expected to be the main driver of our Scope 3 emission reductions. Based on our current assessments, engagement with our top fifty goods and services suppliers is estimated to account for the majority (around two‑thirds) of the total emission reductions required to achieve our Scope 3 GHG reduction target by 2030.

Lever 3: engage with all suppliers on GHG reduction opportunities

To increase supplier awareness of ST decarbonization targets, in 2024, we have implemented various sustainability e-learnings for the Global Procurement Organization.

In 2025, ST deployed a supplier engagement program that includes inviting its 200 most GHG‑emissive suppliers to disclose and share primary climate data with ST, in order for ST to monitor the evolution of the supply chain carbon footprint over time. The program also includes a communication campaign sharing ST’s sustainability ambitions and long‑term goals.

To engage with suppliers towards decarbonization, ST continues to integrate carbon reduction criteria into its procurement processes (such as our tendering, new supplier onboarding and supplier evaluation and monitoring processes).

The GHG reduction associated with this broader engagement lever is estimated to complement the impact of the first two levers, accounting for the remaining share of the Scope 3 emission reductions required to achieve our target by 2030.

These targets and levers have been set based on consultations with internal stakeholders working on the topics, including finance, manufacturing & technology, global purchasing, central facilities and sustainabilities ("CCFS") and corporate sustainability ("CSO") and validated by executive management. Refer to Section 3.4.2.2. (Governance).

Financial resources related to climate change

CapEx related to climate change mitigation actions


In millions of U.S. dollars	December 31, 2025	December 31, 2024
Financial resources allocated to action plan (CapEx)	39	28

As of December 31, 2025, the total CapEx related to climate change mitigation actions amounted to $39 million ($28 million in 2024) mainly driven by new energy saving projects (including district cooling system) and CAPG abatement systems installation. This amount has also been considered in our eligible CapEx as individual measures. Please refer to Section 3.4.3.5. (EU Taxonomy) for further information.

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OpEx related to climate change mitigation actions


In millions of U.S. dollars	December 31, 2025	December 31, 2024
Financial resources allocated to action plan (OpEx)	6	6

As of December 31, 2025, the total OpEx related to climate change mitigation actions amounted to $6 million mainly driven by the purchase of energy certificates. The amount is reported within the line "Power and gas" in Note 7.6.28. (Expenses by nature) of our consolidated financial statements (please refer to Section 7 (Consolidated financial statements).

Future financial resources related to climate change

Please refer to Section 3.2.4. (Performance - Financial Outlook: Capital Investment) for CapEx and Note 7.6.37. (Commitments, contingencies, claims and legal proceedings) for OpEx.

3.4.3.1.C.2. Carbon neutrality

We aim to be carbon neutral each year from 2027, in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus).

Intermediate milestones of carbon neutrality target

As intermediate milestones to be achieved by 2025, ST had committed to (i) decrease scope 1 + scope 2 market-based GHG emissions by 50% versus the 2018 baseline value2 and (ii) to source 80% renewable electricity. These intermediate milestones were endorsed by the Science Based Targets Initiative ("SBTi"). These milestones have been achieved in 2025.

Carbon neutrality target


In tCO2eq	December 31, 2024	December 31, 2025	December 31, 2027 (target year)
Total GHG emission (market-based) (1)	929,830	779,619	0

(1) The reporting perimeter is aligned with the perimeter used for the Scope 1, 2 and 3 emission reduction targets, for the identified categories.

To achieve carbon neutrality by the end of 2027, ST will offset its residual GHG emissions from its own operations through purchasing of carbon credits, considering recognized quality standards for carbon credits from GHG emissions reduction projects. No carbon credit has been purchased nor cancelled in 2025. Please refer to the disclosure Intended amount of GHG emission reductions or removals to be financed in the future through carbon credits purchases (E1-7) in Section 3.4.3.1.D. (Metrics related to climate change mitigation and adaptation) for additional information on ST's intention to finance climate change mitigation projects through the purchase of carbon credits.

The decrease observed between 2024 and 2025 is driven by reduction across all scopes, with nearly half of the effect coming from scope 1.

(2) These intermediate milestones are outside of the assurance scope.

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3.4.3.1.C.3. Climate change adaptation

As mentioned above, building on the initial inherent risk analyses provided by the Climate Study, ST has been working to define the methodology and gather additional technical data necessary to assess the residual exposure of its manufacturing infrastructure to heat risks. A first pilot analysis of one site’s residual exposure to heat risks was completed in 2024. Throughout 2025, we have been working to complete the analyses for the remaining sites. We aim to define thresholds and indicators to finalize the assessment of residual heat risk exposure. These actions are ongoing.

3.4.3.1.D. Metrics related to climate change mitigation and adaptation

Energy consumption and mix (E1-5)

Total energy consumption


In Megawatt-hour	December 31, 2025	December 31, 2024
Fuel consumption from coal and coal products	—	—
Fuel consumption from crude oil and petroleum products	10,220	7,023
Fuel consumption from natural gas	297,202	284,239
Fuel consumption from other fossil sources	—	—
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources	419,876	340,811
Total energy consumption from fossil sources	727,298	632,073
Total energy consumption from nuclear sources	117,696	74,394
Fuel consumption from renewable sources	—	—
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources	2,669,549	2,643,981
Consumption of self-generated non-fuel renewable energy	5,753	6,071
Total energy consumption from renewable sources	2,675,302	2,650,052
Total energy consumption	3,520,297	3,356,519
Total energy consumption from activities in high climate impact sectors	3,520,297	3,356,519

In this reporting year, ST’s total energy consumption amounted to 3,520,297 MWh out of which 727,298 MWh related to fossil sources, 117,696 MWh related to nuclear sources and 2,675,302 MWh related to renewable sources. Total energy consumption increased by approximately 5% versus previous year, mainly driven by the ramp up of the district cooling system in Singapore. In addition, this year the total amount includes the consolidated financial statement perimeter as presented in the general basis for preparation in Section 3.4.2.1. (General basis for preparation (ESRS 2 BP 1 and BP 2).

While the total energy consumption remains stable between 2024 and 2025, the allocation of energy by source (fossil, nuclear and renewable) has changed due to operational considerations and contractual instruments.

First, the energy certificate coverage has been revised at site level to reflect operational decisions taken in 2025. In some countries with a high share of nuclear generation in the residual grid mix, the reduction in certificate coverage results in higher proportion of our electricity consumption being attributed to nuclear sources.

Second, purchased district-cooling water is classified according to the energy mix of the provider and related country of operations. As such, in Singapore, as the district cooling system is predominantly supplied by fossil-based generation, the associated consumption is reported as energy from fossil sources. This contributes to an observed increase in our reported total energy consumption from fossil

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sources. This increase in reported fossil energy does not reflect the energy efficiency of the district-cooling water system observed at site level. The use of centralized district cooling provides efficiency benefits at system level (e.g., reduced on-site electricity use), which are not yet visible in the above table.

In addition, the planned start of the new power purchase agreement in Malaysia was postponed from 2025 to 2026. This postponement also contributed to the higher share of non‑renewable energy in ST’s overall energy mix.

Finally, the variations on energy source allocation are also partially driven by the update of electricity mix factors using the latest available data from the IEA database.

The reported amounts correspond either to meter reading, invoices, estimates or certificates received from external providers. For non-manufacturing sites, electricity and natural gas consumptions are determined either by direct measurement (based on invoices from suppliers) or by estimation using data from a similar site with comparable employee numbers and geographic location. This methodology is applied consistently across non-manufacturing sites and represents less than 0.5% of STMicroelectronics’ total energy consumption.

As a manufacturer of semiconductor devices which are electronic components, ST activities belong to the NACE code 26.11 "Manufacture of electronic component". According to the Commission delegated Regulation (EU) 2022/1288 and in Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council, the NACE code 26.11 “Manufacture of electronic component” is classified in section C-Manufacturing. This section C-Manufacturing is considered as a high climate impact sector. As such, the entire perimeter of ST activities is considered as operating in high climate impact sector.

As ST has all its operations in high climate sector, it has disaggregated the total energy consumption from fossil sources by consumption from crude oil and petroleum products 10,220 MWh (7,023 MWh in 2024), from natural gas 297,202 MWh (284,239 MWh in 2024) and from consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources 419,876 MWh (340,811 MWh in 2024). ST does not consume fuel from coal and coal products nor from other fossil sources.

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Energy mix in percentage


In percentage	December 31, 2025		December 31, 2024
Share of fossil sources in total energy consumption	21	%	19	%
Share of nuclear sources in total energy consumption	3	%	2	%
Share of renewable sources in total energy consumption	76	%	79	%
	100	%	100	%

As of December 31, 2025, the share of renewable energy in ST overall energy mix amounted to 76%.

ST’s energy consumption from renewable sources amounted to 2,675,302 MWh and relates to three different type of sources (i) onsite generation from solar panels, (ii) offsite power purchase agreement and (iii) Energy Attributes Certificates ("EACs"). ST does not consume fuel from renewable sources including biomass or other related type.

While onsite renewable energy generation, offsite power purchase agreement ("PPAs") and the overall volume of purchased EACs remained stable over the period, the observed slight decrease in the share of renewable sources in total energy consumption is mainly driven by changes at site level.

Specifically, adjustments in the EAC coverage of the individual sites directly affect the portion of electricity that is attributed to residual grid electricity consumption. When EAC coverage decreases at a given site, a larger share of its electricity consumption is allocated to the country-specific residual grid mix which is based on national electricity mix factors. The year-on-year variations in our renewable versus non-renewable split therefore largely reflect these site-level EAC allocation changes and the underlying residual mix factors applied in each country.

Energy production


In Megawatt-hour	December 31, 2025	December 31, 2024
Non-renewable energy production	—	—
Renewable energy production	5,753	6,071

At ST, we do not produce non-renewable energy for our operations. Certain of our sites have onsite generators that are able to produce non-renewable energy in case of emergency situation. The amount of energy produced in this reporting year is considered as not material. None of ST's sites are using coal to produce energy. In this reporting year, we produced renewable energy for a total of 5,753 MWh. It mainly comes from the installation of solar panels. The amount of renewable energy produced onsite decreased slightly compared with 2024, reflecting minor year‑on‑year variations in solar generation.

Energy intensity based on net revenue


In Megawatt-hour per millions of U.S. dollars	December 31, 2025	December 31, 2024
Total energy consumption per net revenue	298	253

The energy intensity amounted to 298 MWh per million of U.S. dollars, where the numerator is ST total energy consumption and the denominator is ST total revenues as reported on the consolidated income statement for the year ended December 31, 2025 in Section 7.1. (Consolidated income statement). The change is mainly explained by a combination of lower net revenue and moderately higher total energy consumption.

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Gross scope 1,2,3 and Total GHG emissions (E1-6)

Gross scope 1 GHG emissions from the consolidated accounting group


In tCO2eq	December 31, 2025		December 31, 2024
Scope 1 GHG emissions	471,546		538,136
% of Scope 1 GHG emissions from regulated emission trading schemes	1	%	—	%

As of December 31 2025, the total amount of scope 1 GHG emissions in tCO2eq amounted to 471,546, for ST consolidated accounting group. as described in Section 3.4.2.1. (General basis for preparation (ESRS 2 BP 1 and BP 2)) . The reduction compared to 2024, is the result of two main elements: i) an increase due to methodological refinement with the update of global warming potential factors source and HTF computation, and (ii) a decrease due to operational considerations with lower production volumes and the positive effect of CAPG abatement system installed in 2024. The latter is described in Section 3.4.3.1.C.1. (Climate change mitigation).

To compute our scope 1 GHG emissions, the principles, requirements and guidance provided by the GHG Protocol Corporate Standard were applied.

ST computed the emissions of CO2, CH4, N2O, HFC, PFC, SF6 and NF3. For PFCs, emission factors from the IPCC 6th Assessment Report (2023) were used and integrated into a calculation tool. With regards to calculation methods, ST followed the IPCC-2019 Standard – Chapter 6: Electronics Industry Emissions and specifically tier 2c and GWP100 values as per application requirement 39 of the ESRS E1. ST does not have any biogenic emissions. The tier 2c method distinguishes process types for all GHGs, and considers wafer sizes, i.e. between ≤ 200 mm and 300 mm. In addition, the method provides estimates of the quantities of fluorinated compounds exhausted from tools which are connected to emission control systems.

For scope 1 GHG emissions, ST calculated GHG emissions from stationary combustion, mobile combustion, process emissions and fugitive emissions. ST used two activity data “energy related emissions” with the emission factor database of the International Energy Agency ("IEA") as emission factor source and PFC consumption and HFC leakages with IPCC Sixth (AR6) Assessment report of the IPCC. These calculations include emissions from non-renewable fuel consumption. In 2025, ST updated its GWP factors from IPCC AR5 to IPCC AR6, which contributed to an increase of the scope 1 GHG emissions.

Similar to previous year, ST did consider GHG related to Heat Transfer Fluids ("HTF") which are considered fugitive emissions. HTF is a refrigerant used in a closed loop which is not supposed to leak, however it might be partly released or discharged during maintenance. In 2024, due to inability to measure accurately the related emissions, and lack of standards and guidance regarding the GWP of all the fluids, ST made a preliminary estimate out of its total scope 1 emissions based on external source (the estimate of 19% of total scope 1 emissions was used).In 2025, ST refined its estimate by integrating operational and site-specific data into the modelling. HTF are generally not used as part of our semiconductor process steps, except for a few specific cases where they are used in closed process equipment. They are primarily employed in point of use chiller and cooling equipment, and associated emissions therefore mainly relate to their evaporation.

In 2025, the total amount of GHG emissions related to HTF is estimated at 131,690 tCO2eq (101,810 tCO2eq in 2024) which explains part of the variation observed between 2024 and 2025 data. The 2025 estimate is based on a refined HTF methodology, moving from a high-level approximation to a more granular, site‑specific approach relying on HTF consumption data.

This approach still involves assumptions, in particular regarding: (i) the share of HTF consumption attributable to refilling or maintenance, and (ii) the application of the same GWP (i.e. the highest available) across nearly all HTF types.

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While these changes provide a more granular and robust approach to estimating GHG emissions related to HTF, the total emissions included in our Scope 1 GHG inventory remain subject to uncertainty because of the impossibility to measure evaporation in the environment at pipe gaskets. In addition, comparability over time may be affected in subsequent reporting periods, should further refinements to key assumptions be implemented.

In this reporting year, 1% of our scope 1 GHG emissions were covered by regulated Emission Trading Schemes ("ETS"). It includes GHG emissions related to new installations subject to EU ETS and to a lesser extent non-EU ETS in Shenzhen where a pilot ETS scheme is in place.

The percentage is calculated using the GHG Emissions in (tCO2eq) from EU ETS, and non-EU installations divided by the Scope 1 GHG emissions (tCO2eq). For these installations, Scope 1 emissions are calculated in accordance with the applicable ETS rules (e.g., EU ETS), and the same accounting period is used for ETS‑reported and total Scope 1 emissions.

Gross scope 2 GHG emissions from the consolidated accounting group


In tCO2eq	December 31, 2025	December 31, 2024
Location-based Scope 2 GHG emissions	818,642	864,057
Market-based Scope 2 GHG emissions	136,788	171,347

In this reporting year, the total amount of scope 2 GHG emissions for ST amounted to 818,642 tCO2eq with a location-based approach and to 136,788 tCO2eq with a market-based approach. ST’s scope 2 emissions decreased by around 5 % on a location‑based basis and by approximately 20 % on a market‑based basis versus previous year reporting period. This location-based scope 2 decrease is mainly explained by lower energy consumption and related update of IEA electricity grid generation factors, which have decreased for most of the locations in scope. The market-based scope 2 decrease reflects the impact on the district cooling set-up and the related emission factor used (i.e. supplier specific) and the increased coverage of EACs in certain countries where electricity grid is mainly sourced from fossil energy.

To compute our location-based and market-based scope 2 GHG emissions, the principles, requirements and guidance provided by the GHG Protocol scope 2 guidance were considered. As such, the location-based amount reflects the average emissions intensity of grids on which energy consumption occurs while the market-based method reflects emissions from electricity that ST was able to drive. The latter, derives emission factors from contractual instruments whenever available. When such emission factors are not available, ST applies grid-average emission factors from recognized databases, primarily those of the IEA and ADEME.

For location-based approach, the amount includes purchased electricity, super-heated water and district-cooling water consumed by ST during the reporting period. For electricity related emissions, the International Energy Agency database of emissions factors was used for all countries except for France, where ADEME, the French Agency for Ecological Transition dataset was used. For super-heated water used on two of our sites, the emissions factor provided by the supplier was used. For district cooling water, ST defined a specific emission factor of chilled water based on district cooling installation specificities and local grid emission factor.

For the market-based approach, on top of super-heated water, district-cooling water and electricity from grid, ST considered four types of renewable electricity instruments: EACs, offsite PPAs for three countries, Green electricity contract for three sites and onsite generation for three sites coming from solar panels. ST defined at corporate level a renewable procurement strategy whereby the certificates are acquired at country level and subsequently allocated by ST to specific sites in that country, based on each site’s forecasts. Green electricity contracts, by contrast, are signed directly at site level. EACs can be procured whether unbundled i.e. separately from the underlying energy produced or bundled.

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GHG emissions other than CO2 (e.g., CH4 or N2O) are included from location-based grid average emissions factors and from the market-based method information used in the computation of ST scope 2 GHG emissions.

Gross scope 3 GHG emissions


In tCO2eq	December 31, 2025	December 31, 2024
1 Purchased goods and service	2,872,353	2,903,098
2 Capital goods	325,980	449,764
3 Fuel and energy-related activities	268,618	259,815
4 Upstream transportation and distribution	88,087	126,762
5 Waste generated in operations	3,907	4,332
6 Business traveling	30,471	39,182
7 Employee commuting	70,770	54,403
8 Upstream leased assets	—	—
Total Gross indirect Scope 3 upstream GHG emissions	3,660,187	3,837,356

ST has disclosed in the above table the scope 3 GHG emissions for categories that are a priority for ST. This prioritization is based on the targets defined this reporting year. Please refer to Section 3.4.3.1.C. (Actions, targets and resources in relation to climate change policies).

ST considered the GHG Protocol guidance related to companies producing intermediate products and other elements further detailed below. ST is not reporting on scope 3.11 (GHG related to the use of sold products) for this reporting period in accordance with ESRS standards.

The determination of GHG emissions related to the use of sold products presents a high level of complexity and uncertainty. The complexity lies in the integration of semiconductor devices in end-products and its consequent impact on GHG during usage. Semiconductor devices have many potential downstream applications each with a different GHG emissions profile. This variability requires ST to make significant and multiple assumptions in order to model the downstream emissions associated with the various possible end applications. Additionally, current standards and industry associations provide no guidance to support these complex calculations.

Additional work has been performed in 2025 to assess in detail the collection of use-phase related data and ST investigated the possibility to engage with external stakeholders. ST notably defined a potential methodology and applied it on a sample. This analysis demonstrated that due to significant data limitations, high variability in key parameters, and the inherent complexity of ST’s intermediate products, it is not possible to produce a reliable and representative estimate of Scope 3.11 emissions in line with ESRS requirements. The high-level measurement uncertainty cannot meet the ESRS 1 Appendix B criteria (“ Qualitative characteristics of information”). In accordance with ESRS standards related to ESRS E1 7.2 and the Appendix B, the usefulness of the information is undermined by the significant assumptions and estimates that cannot be accurately explained, hence ST cannot report Scope 3.11 emissions. ST will monitor ongoing regulations development and might adjust its approach accordingly in future years.

To compute scope 3 reported amounts, ST considered the principles, requirements and guidance provided by the GHG Protocol "Corporate Value Chain (Scope 3) Accounting and Reporting Standard" along with the GHG Protocol "Technical Guidance for calculating Scope 3 emissions". The fifteen scope 3 categories from this standard have been screened.

The reporting boundaries considered in the calculation methods cover the consolidated perimeter as detailed in the Basis of preparation.

The calculation methods for estimating the GHG emissions either follow a spend-based approach or a distance-based or an average-data method, as described in the GHG Protocol.

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Emission factors from various databases were used: IEA, US Environmental Protection Agency ("EPA") Supply Chain, Defra, ADEME, and Ecoinvent. Supplier specific emission factors were used when available. These database were updated based on the latest version available as of September 30, 2025. Databases are retained based on the following approach:

•Reputation and recognition: use of databases published by globally recognized and reputable institutions;

•Methodological and data transparency: clear documentation of calculation methodologies, data sources and collection methods.

With limited guidance available from current reporting standards on the treatment of radiative forcing from aviation (non‑CO₂ effects such as contrails), ST has decided, for the reporting year, to continue using emissions factors for flights that include the impact of aviation contrails. Defra database is used as it is providing emission factors including this component. This methodological choice affects categories 3.4 “Upstream transportation and distribution”, 3.6 “Business travel”, and 3.9 “Downstream transportation and distribution", and is consistent with previous year approach.

ST has customized its environmental tool to compute carbon related emissions, combined with the use of data analytic and visualization software.

As of December 31, 2025:

•scope 3.1 amounted to 2,872,353 tCO2eq and relates to the GHG emissions of our purchased goods and services. Based on the GHG Protocol, two main approaches have been considered, the spend-based method and the average-data method, with a priority on average-data method when information on emission factor related to specific goods or services category was available along with quantity associated to relevant activity data. We have screened all relevant spend categories.The small decrease is mainly triggered by the emission factor update performed as the activity data / spend amount are stable compared to previous year.

•scope 3.2 amount to 325,980 tCO2eq and relates to the GHG emissions of our equipment, building or IT related services, invoiced in 2025. It excludes capital expenditure that are recognized or accrued in the financial statements but not yet invoiced. The same approach and methodology as for the scope 3.1 was used. The decrease observed is consistent with a reduction of related investments (refer to Section 7.6.10. Property, plant and equipment);

•scope 3.3 amount to 268,618 tCO2eq and relates to GHG emissions of fuel and energy-related activities not accounted for in scope 1 or scope 2. It includes fuel consumed by leased company cars, other fuel consumed by power generators and gas from boilers or power back-up generators or catering equipment, and super-heated water. It also includes transmission and distribution losses related to ST electricity consumption. Emission factors applied on these categories are related to energy upstream phase (production and transport). The location-based methodology is used along with average-data method. The increase is mainly driven by the ramp up of the district cooling system in Singapore. Refer to Section 3.4.3.1.D. (Metrics related to climate change mitigation and adaptation - Energy consumption and mix (E1-5)) for additional details;

•scope 3.4 amount to 88,087 tCO2eq and relates to the GHG emissions of our products' logistic flows and storage activities. The distance-based methodology described in the GHG Protocol was followed for our logistic flows and the spend-based approach was used for our storage activities. The decrease observed this year is mainly driven by the update of emissions factor database and reduction in transportation activity (mostly distance-based);

•scope 3.5 amount to 3,907 tCO2eq and relates to the GHG emissions from third-party disposal and treatment of waste generated by ST. It includes emissions from disposal of solid waste and wastewater. Based on the GHG Protocol, the waste-type specific method was followed. The decrease is mainly due to changes in waste mix, as described in Section 3.4.3.4.D.2. (Metrics);

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•scope 3.6 amount to 30,471 tCO2eq and relates to the GHG emissions from the transportation of employees for business related activities in vehicle owned or operated by third-parties such as aircraft, trains, shuttles, taxi, car rental. Based on the GHG Protocol, the distance-based and the spend-based methods were followed. The variation observed is due to less business travel in 2025 compared to 2024, partially counterbalanced by the change of database as stated above;

•scope 3.7 amount to 70,770 tCO2eq and relates to the GHG emissions from the transportation of employees between their home and their place of work. It includes various transportation modes: automobile including carpooling, bus, rail, tramway, subway and motorcycles. Based on the GHG Protocol, the distance-based method was followed. The increase observed in 2025 is mainly due to the coverage of the consolidated perimeter, as 10% of scope 3.7 data have been estimated due to missing information on employee commuting. The methodology defined is based on extrapolation of available employee commuting data for similar geographical areas;

•scope 3.8 is not applicable for ST as of December 31, 2025. Where ST does have upstream leased assets such as building or equipment, they are considered under IFRS as finance leases and as such shall be accounted in scope 2.

Some categories were not relevant for ST such as categories 3.13, 3.14 and 3.15.

Other categories were not disclosed considering the criteria provided by ESRS to identify the significance i.e. magnitude of GHG emissions, influence, related transition risks and opportunities and stakeholder views. This is valid for the following categories: scope 3.9, 3.10 and 3.12.

We have not received primary data obtained from suppliers or other value chain partners. Scope 3 calculation methods used rely on estimates with limited guidance available from the standards. The variability of the scope 3 disclosed amounts exists and underlying numbers might be adjusted in the coming years following potential revision of the standard, specific data received by value chain stakeholders or precision on emission factors.

In addition, our ability to receive primary data from suppliers or other value chain partners is highly dependent from the evolution of external requirements, the ability of these stakeholders to calculate and provide the information to us and our variety of partners with operations worldwide. If the availability and quality of information from our value chain partners improves in the future we envisage to enhance our methodology for value chain reporting. As our maturity is increasing, we expect the scope 3 to remain an estimated amount with high variability, for the coming reporting years.

The total amounts of GHG emissions, included in this statement, are also subject to this variability as they include scope 3 GHG emissions.

Total GHG emissions


In tCO2eq	December 31, 2025	December 31, 2024
Total GHG emission (location-based)	4,950,375	5,239,549
Total GHG emission (market-based)	4,268,521	4,546,839

Decrease, in both location-based and market-based, is consistent with the decrease observed for each scope, and is mainly attributable to scope 3. Please refer to the table below Total GHG emissions disaggregated by scope.

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GHG intensity based on net revenue


tCO2eq per millions of U.S. dollars	December 31, 2025	December 31, 2024
Total GHG emissions (location-based) per net revenue	420	395
Total GHG emissions (market-based) per net revenue	362	343

As of December 31, 2025, the GHG intensity based on net revenue amounted to 420 tCO2eq per millions of U.S. dollars, using the location-based approach to compute GHG emissions and to 362 tCO2eq per millions of U.S. dollars using the market-based approach to compute GHG emissions where the numerator is ST total GHG emissions (location-based and market-based respectively) and the denominator is ST total revenues as reported on the consolidated income statement (Section 7.1 Consolidated income statement) for the year ended December 31, 2025.

The higher GHG intensity is mainly due to total GHG emissions decreasing less than net revenue, reflecting the non-linear impact of incompressible fixed energy and operational costs at manufacturing sites.

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Total GHG emissions disaggregated by scope


	Retrospective						Target year
In tCO2eq	December 31, 2024 (base year)		December 31, 2025		% 2025/2024		2030
Scope 1 GHG emissions
Scope 1 GHG emissions from the consolidated accounting group	538,136		471,546		(12)	%	N/A
% of Scope 1 GHG emissions from regulated emission trading schemes	—	%	1	%			N/A
Scope 2 GHG emissions
Location-based Scope 2 GHG emissions from the consolidated accounting group	864,057		818,642		(5)	%	N/A
Market-based Scope 2 GHG emissions from the consolidated accounting group	171,347		136,788		(20)	%	N/A
Subtotal Scope 1 and market-based Scope 2 GHG emissions	709,483		608,335		(14)	%	567,586
Significant scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO2eq)	3,837,356		3,660,187		(5)	%	3,453,620
1 Purchased goods and service	2,903,098		2,872,353		(1)	%	N/A
2 Capital goods	449,764		325,980		(28)	%	N/A
3 Fuel and energy-related activities	259,815		268,618		3	%	N/A
4 Upstream transportation and distribution	126,762		88,087		(31)	%	N/A
5 Waste generated in operations	4,332		3,907		(10)	%	N/A
6 Business traveling	39,182		30,471		(22)	%	N/A
7 Employee commuting	54,403		70,770		30	%	N/A
8 Upstream leased assets	—		—				N/A
Total GHG emissions
Total GHG emission (location-based)	5,239,549		4,950,375		(6)	%
Total GHG emission (market-based)	4,546,839		4,268,521		(6)	%

Intended amount of GHG emission reductions or removals to be financed in the future through carbon credits purchases (E1-7)

In line with our Global Environmental Policy and climate strategy, ST focuses on reducing greenhouse gas emissions within its own operations and value chain, for example through CAPG reduction, increased use of renewable electricity and energy efficiency measures. Any support to GHG mitigation projects outside our value chain through carbon credits is treated separately from our GHG inventory and targets.

As of December 31, 2025, ST did not purchase nor retire any carbon credit. However, ST is planning to offset its residual GHG emissions from its own operations through the purchase of carbon credits in line with its carbon neutrality claim, by the end of 2027. This claim is accompanied by GHG emission

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reduction targets as disclosed in the Target Section 3.4.3.1.C.1. (Climate change mitigation), and the reliance on carbon credits does not impede the GHG emission reduction targets set on our own operations and value chain.

Intended amount of GHG emission reduction or removal to be financed in the future through carbon credits purchase


In tCO2eq			2026 to 2027
GHG emissions outside the value chain planned to be financed and retired in the future			814,000

ST intends to finance around 814,000 tCO2eq GHG emission reductions or removals between 2026 and 2027 from climate change mitigation projects outside its value chain through the purchase of carbon credits. With the support of an external party, ST has designed a potential portfolio of carbon offset projects type combining avoidance and removal, local impact with a mix of nature-based and technical-based solutions.

In 2025, we have launched a request for information to identify suppliers that would best match ST business requirements and confirm volume availability on the market. One of our criteria was to ensure projects would align with recognized quality standards. In parallel, we have defined a roadmap and corresponding budget for offsetting our residual emissions. In 2026, we will begin offsetting a portion of our residual GHG emissions and report accordingly on related carbon credit purchase and cancellations in our next annual report.

3.4.3.2. Pollution and Chemicals (E2)

It is our priority to responsibly manage chemicals and replace hazardous substances wherever possible. We carefully manage the chemical substances and materials we use throughout our operations. This allows us to monitor and address our impacts on people and the environment and to comply with legal and customer requirements.

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3.4.3.2. Pollution related IROs (SBM-3)

The following table lists the IROs related to pollution and chemicals we have identified and assessed as material in our 2025 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

E2 – Pollution and chemicals

Description

Type of IRO

Actual/

Potential

Value chain

segment

Time horizon

Material on a residual(1) or inherent(2) basis

ST response

Targets

Negative impact from ST on local natural ecosystems caused by existing and / or accidental pollution (e.g., hazardous chemicals and gases use and handling) of soil, air, water, living organisms, and food resources

Negative impact

Actual

Own operations

Short term

Residual basis

ST’s pollution prevention program

We aim to further decrease Volatile Organic Compound (VOC) emissions from ST’s manufacturing sites, to achieve an overall 70% absolute reduction by 2030 versus 2024.

Negative impact from the suppliers on local natural ecosystems caused by existing and / or accidental pollution (e.g., hazardous chemicals and gases use and handling) of soil / air / water / living organisms and food resources

Negative impact

Actual

Upstream

Short term

Residual basis

ST's responsible supply chain program

No target in place

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Potential negative impact from foundries and OSATs on local natural ecosystems caused by accidental pollution (e.g., hazardous chemicals and gases use and handling) of soil, air, water, living organisms, and food resources

Negative impact

Potential

Upstream

Mid term

Residual basis

ST's responsible supply chain program

No target in place

Risk of ST not being able to substitute hazardous materials (substances of concern and very high concern) and heavy metals (e.g., lead) in processes and products, in line with increasing customers' requirements and/or enactment or reinforcement of regulations banning, restricting, or reinforcing related obligations, resulting in additional costs leading to unmet customers' / other stakeholders' expectations

Risk

Potential

Own operations

Long term

Residual basis

ST’s substances and chemicals program

We aim, alongside our efforts to continuously assess substances of very high concern and substitution, to make all products manufactured at ST 98% halogen-free by 2035 (entity-specific).

(1) "Residual" refers to the materiality assessment that takes into account existing mitigation measures.

(2) "Inherent" refers to the materiality assessment without taking into account any existing mitigation measures.

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3.4.3.2.A. Processes to identify and assess material pollution-related impacts, risks and opportunities

We have screened our sites and operations and identified material negative pollution-related impacts on local natural ecosystems that may arise from the nature of our manufacturing activities, as an IDM. The assessment considered the mitigating measures already in place to identify and address air, water, and soil contamination, and identified de-pollution needs at specific site locations.

We have assumed that our subcontractors might also generate material negative pollution-related impacts on local natural ecosystems due to the nature of their activities which are similar to ours and geographical locations.

For both our own operations and those of our subcontractors, magnitude and likelihood were assessed by considering the various types of chemicals used in the semiconductor manufacturing process, the mitigation measures in place and past pollution-related incidents.

For our suppliers, we assessed negative pollution-related impacts resulting from their activities, considering both known existing pollution cases (based on limited publicly available information) and potential impacts arising from the broad range of activities they provide to us.

Regarding materials, we strive to reduce the use of hazardous substances and to find substitutes. We assessed the related identified risk considering the complexity of our manufacturing processes and the current state of pollution management technology.

Engagement with affected communities

We believe that conducting consultation, including with affected communities, is essential for working towards common goals and addressing pollution-related challenges. Our engagement with affected communities takes place on an ad hoc basis as needed, based on the engagement process described in Section 3.4.2.3.B. (Interests and views of stakeholders). ST sites actively engage with communities and national and local authorities, according to their specific needs and the local context. This can include local non-governmental organizations ("NGOs"), community organizations or town hall events to address community concerns. Engagement with affected communities is implemented based on ST's Sustainability Stakeholder Engagement Policy. ST sites consider local circumstances in the deployment of this policy. This engagement aims to provide relevant insights which can inform decision making processes at local level and improve our ability to manage and mitigate pollution-related negative impacts effectively.

3.4.3.2.B. Policies related to pollution

Our Global Environmental Policy outlines our ambition to minimize our negative environmental impacts, and risks arising from our own operations and those of our suppliers. We aim to achieve this through our actions on pollution prevention and actions to minimize the impact of certain chemical substances on people and the environment. Through our stakeholder engagement, as described in Section 3.4.2.3.B. (Interests and views of stakeholders) we are informed of the interests of our key stakeholders, whose interests are taken into consideration by ST when setting policies concerning pollution.

Pollution management is an integral part of the Global Environmental Policy. Relevant key elements included in the policy are our commitment (i) to strive for pollution prevention, (ii) to have a pollution and chemicals management system based on standards and best practices and therefore maintaining relevant environmental certifications (namely ISO 14001) of relevant ST manufacturing sites and large R&D sites worldwide, including processes for monitoring; and (iii) to minimize the impact of chemical substances on people and the environment.

To monitor and minimize the negative impacts on the environment (caused by existing and/or accidental pollution) resulting from ST's own operation, our Global Environmental Policy outlines a commitment to

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implement and maintain control measures, and audits to check environmental procedures applicable to pollution prevention and chemical use are carried out and to identify and prioritize areas for improvement.

To monitor and minimize the negative impacts on the environment (caused by existing and/or accidental pollution) resulting from ST's suppliers' and subcontractors' operations, our Global Environmental Policy outlines our commitment to develop long-term relationships with ST’s suppliers and partners, particularly those with the highest environmental standards and practices.

ST's Global Water Policy details our ambition to manage water-related impacts, including water pollution, across our own operations and those of our major subcontractors. The policy is available on st.com, for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it. Further details of this policy are included in Section 3.4.3.3.B. (Policies related to water).

In connection with our ambition regarding pollution management and chemicals use referenced in the Global Environmental Policy, we have several procedures relating to the mitigation of negative impacts related to emissions in air and water and to avoid accidental release into soil. Those procedures, applicable to all ST manufacturing sites and to selected non-manufacturing sites, are imposed to:

•be compliant with relevant legal requirements at local level, employees’ health and safety, adequate protection and reduced emissions to the environment, whatever chemical substances and gases are used onsite; and

•control the concentration and/or quantity of pollutants in its air emissions, industrial wastewater emissions and to seek to prevent accidental discharges into soil and groundwater so that levels are maintained below the legal limits laid down in applicable laws and regulations, or in the permits or authorizations.

Substances of concern and very high concern

ST's approach to chemical use, referenced in the Global Environmental Policy, is to substitute and minimize the use of hazardous materials (substances of concern or "SoCs" and very high concern) and heavy metals where feasible, and to phase out certain substances of very high concern where our inability to substitute represents a material risk for the Company. Therefore, ST has set operational procedures applicable to our relevant manufacturing sites and to selected non-manufacturing sites, including procedures addressing:

•the optimization of chemical products consumption; and

•the production of a list of legally banned, regulated, exempted and declarable chemical substances.

As per our policy and relevant operational procedures, we apply a hierarchy of safety controls approach to our chemical management procedure. When specific chemicals or materials cannot be eliminated or substituted with less hazardous alternatives, we implement engineering measures and administrative controls and provide personal protective equipment ("PPE") to reduce workers’ and environmental exposure.

Avoiding incidents and emergency situations

In line with our commitments included in our Global Environmental Policy to maintain relevant environmental certifications for relevant manufacturing and large R&D sites and to comply with global and local environmental regulations, we have certain procedures to manage, prevent and reduce the risk of incidents and emergency situations occurring as much as possible. These procedures, applicable to ST manufacturing sites and to selected non-manufacturing sites, require these sites to:

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•take certain precautions aimed at prevention of accidental out-of-compliance air and wastewater emissions (emissions amounts emitted above limits laid down in laws and regulations, or in the relevant permits or authorizations), thus reducing negative impacts;

•implement prevention and monitoring measures for equipment that could potentially contaminate soil;

•prepare and update a Spill Control Plan, if required by law;

•apply the precautionary principle (as set out in Principle 15 of the Rio Declaration); and

•apply a resilience management framework including crisis-related and business continuity-related elements to withstand and recover from events, shocks and crises, as quickly and strongly as possible.

Additionally, the Global Environmental Policy includes our dedication to provide appropriate training to all relevant employees, such as fire trainings, chemical risk trainings or environmental trainings, and to provide relevant and applicable information to our stakeholders.

3.4.3.2.C. Actions and resources related to pollution

ST implements various actions aimed at addressing material negative impacts and risks related to pollution. All the following actions are continuous and ongoing to reach the objectives of our related policies and relevant targets, covering the same time horizons as the targets included in Section 3.4.3.2.D. (Metrics and targets related to pollution).

We recognize the importance of reducing environmental emissions to minimize the potential pollution effect we could have, and we have made it a priority to do so in the domains of air, water, and waste. Our approach includes treating emissions where possible and implementing replacement programs for hazardous substances throughout our own operations to reduce our environmental impact.

ST has set EHS criteria in operational procedures for the monitoring of chemicals, substances, emissions to air and wastewater. ST performs regular groundwater analysis to control risks of pollution to soil and groundwater. These procedures are applicable to all ST manufacturing sites and selected non-manufacturing sites depending on their chemical substances use.

ST aims to perform internal corporate EHS audits every three years on all manufacturing sites and selected non-manufacturing sites to check corporate operational procedures are implemented and applied correctly. In this regard, during 2025 internal corporate EHS audits were performed and local action plans were defined by the sites. In addition, sites reported on the progress of the execution of defined action plans related to all audits, including prior years' audits.

ST also operates a program of third-party EHS compliance audits at all ST manufacturing sites, and other selected sites.

At each of our manufacturing sites, local (sustainability) teams and EHS champions are responsible for the following pollution related activities:

•deploying the onsite strategy and programs;

•supporting site management in defining local targets and KPIs;

•monitoring and reporting performance to corporate;

•sharing best practices; and

•engaging with site stakeholders.

ST has dedicated teams on each manufacturing site which work on the adequate functioning of and promote improvement ST's air and water treatment systems.

At each of our manufacturing sites, a chemical committee meets regularly to review and evaluate best management practices for identified hazards. The committee uses a comprehensive approach to make

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decisions on chemical usage. This includes evaluating chemical compositions, hazards, use conditions, engineering controls, medical recommendations, and industrial hygiene requirements. Risk management measures, PPE, waste management, administrative controls, and training requirements are also considered. By applying this process, we can identify critical substances when they are introduced or reclassified. Modifications to existing processes and emissions treatment facilities are also considered and implemented as appropriate.

ST adheres to the RBA Code of Conduct, by setting high standards, conducting thorough audits, providing training, fostering collaboration, emphasizing transparency, and promoting improvement. This approach helps us in our efforts to address the potential impact from pollution generated by our manufacturing processes and supports the overall goal of sustainable development in the supply chain. The RBA framework covers our upstream supply chain, in addition to ST manufacturing sites.

Water

ST's water management process prioritizes proven practices of water management to address the potential impact from pollution of water generated by our manufacturing processes. Action plans have been defined at site level with dedicated experts to help implement actions locally. Further details can be found in Section 3.4.3.3.C. (Actions and resources related to water).

ST’s performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. ST’s major manufacturing sites are ISO certified (please refer to Appendix 11.8. and st.com for an overview).

Additionally, using available proven technologies ST maintains the treatment of wastewater discharge in order to minimize the presence of pollutants and substances of concern in its effluents, amongst others, to be compliant with local regulations. More information can be found in Sections 3.4.3.3.C. (Actions and resources related to water) and Section 3.4.3.4.C. (Actions and resources related to waste).

Air

To further reduce its environmental impact, ST has implemented an air emission abatement program that focuses on reducing emissions of VOCs and covers all ST manufacturing sites. The program includes the use of advanced technologies and processes to capture and treat air emissions from manufacturing processes, as well as ongoing monitoring to check that installations are working effectively. By reducing VOC emissions and reducing the use of other VOC-emitting materials and chemical products, ST is able to minimize and address its impact on the environment and protect the health and safety of its employees and that of local communities. The program also anticipates compliance with possible future stricter regulation on emissions. These actions are undertaken to, amongst others, reach the VOC reduction target as detailed further in Section 3.4.3.2.D. (Metrics and targets related to pollution).

Chemicals

ST has a proactive approach to reduce the use of hazardous substances (including some heavy metals), including substances of very high concern in its processes and final products to help safeguard the health and safety of its stakeholders, while reducing its environmental footprint. These actions are undertaken at all our manufacturing and R&D sites, mainly all ST entities worldwide, that use chemicals and/or purchase any materials containing hazardous substances. In implementing these actions, we also work with our relevant supply chain actors as appropriate.

Examples of such actions include:

•the reduction of the length and complexity of certain manufacturing processes leading to a decrease in chemical consumption;

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•the implementation of replacement programs for hazardous substances, including substances of very high concern, throughout our own operations: we search for the best solutions using technology and innovation to replace hazardous materials in our manufacturing processes;

•the elimination of the use of restricted substances in the manufacturing of our products through new designs and reduced dimensions. For example, ST is using ECOPACK which is a grading system to classify environmental compliance of products, as part of its product strategy. This action is implemented in ST’s own operations specifically at design and process stages. This supports ST in its efforts to address its potential risk of not being able to substitute hazardous materials in ST processes and products;

•specifically to reach our voluntary target to make all products manufactured within ST's own operations 98% halogen-free by 2035, as further detailed in Section 3.4.3.2.D.1. (Metrics and targets related to pollution), in 2025 we formalized the prioritization of some materials, following a preliminary assessment in 2024 to identify the materials needing replacement;

•the requirement towards our suppliers to adhere to the EHS-regulated substances list, which specifies a large number of substances regulated by legislation and which is regularly reviewed. ST also requires its suppliers to confirm their compliance to such list through analytical certificates, safety data sheets, and commitments. This supports ST's efforts to address (i) its potential pollution impact in its value chain; (ii) its potential risk of being unable to substitute hazardous materials in its processes or products; (iii) changing customer perceptions and potentially stricter regulations on the use of hazardous materials in ST's processes or products. This specific action is applicable to ST suppliers and subcontractors and, by extension, all ST sites receiving and purchasing products and materials from these stakeholders are affected; and

•the provision of transparency to our customers on hazardous materials in ST's products, by issuing material declarations for such products. In these product declarations we report the full material disclosure of substances included in these products, based on IPC 1752 format. For substances of very high concern a specific disclosure is available within the material declaration.

3.4.3.2.D. Metrics and targets related to pollution

3.4.3.2.D.1. Targets related to pollution

As per our Global Environmental Policy, we are dedicated to limiting soil, air, and water pollution risks. We do this by, amongst others, implementing state-of-the-art technologies to tackle emissions (in water and air) and by regularly assessing the use and potential substitution of hazardous materials, such as substances of very high concern, to address potential negative impact from our operations on local natural ecosystems caused by, amongst others, air emissions. The targets were developed by ST's Quality Manufacturing & Technology and Corporate Sustainability teams and validated by Senior Management. No external stakeholders were directly involved in the target-setting process.

Pollution-related target

In 2024 we set a voluntary target to decrease VOC air emissions from ST's fourteen main manufacturing sites, three large R&D sites and one EWS site (as detailed in the table included in Appendix 11.9.) to achieve 70% absolute reduction in kg by 2030 versus 2024, building on emissions reductions already achieved in past years.

Progress toward these targets is monitored quarterly, as part of ST’s pollution prevention program (refer to Appendix 11.10.) and as described in Section 3.4.2.2. (Governance ),

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VOC reduction target


In kilogram	December 31, 2024 (base year)		December 31, 2025		December 31, 2030 (target)
VOC emissions	264,613		253,872		79,384
VOC emissions reduction rate (in %)	—	%	4	%	70	%

This target focuses on delivering a reduction of VOC air emissions in absolute kg value in comparison with 2024 levels, taking into account expected production growth.

The baseline value, reported in base year 2024, is 264,613 kg of VOC (i.e. 265 tons), covering our main manufacturing sites and major R&D sites as further detailed in Appendix 11.9. VOC air emissions in 2025 is 253,872 kg, resulting in an absolute reduction of 4% versus 2024 mainly driven by operational activities.

VOC air emissions are measured by monitoring (periodic measurements) or online monitoring by an accredited laboratory (through automated measuring systems).

By setting this target, ST addresses the prevention and control of air pollutants and substances emission, by reducing air pollutants emitted by ST operations, which subsequently contributes to reducing emissions of substances of concern.

The target has been defined by using 2024 forecasted VOC air emissions and simulating implementation of (new) VOC abatement systems in three specific manufacturing sites, while keeping the existing VOC abatement systems in the other manufacturing sites. The reduction of the VOC is not expected to be linear, as the installation of the equipments is part of a project executed in several steps over several years. Once the new VOC abatement systems will be implemented, VOC emissions at these sites should decrease significantly, and the impact on absolute reduction of VOC emissions will be reflected. In addition new manufacturing facilities will be designed with solvent exhaust segregation and VOC abatement systems will be used to treat these exhaust. This assessment indicates that a reduction of VOC air emissions from ST’s own operations of around 70% in 2030 versus 2024 is achievable.

This target is based on scientific evidence regarding the negative impact of VOC emissions on human health and the environment.

Chemicals related target (entity-specific)

With regard to the use of hazardous materials, including substances of concern and very high concern, in our manufacturing processes and products, in 2024 we set a voluntary entity-specific target to make all sold products manufactured within ST's own operations 98% halogen-free by 2035, alongside our efforts to regularly assess the use and potential substitution of substances of very high concern.

Progress toward these targets is monitored quarterly, as part of ST's substances and chemicals program (refer to Appendix 11.10.) and as described in Section 3.4.2.2. (Governance ),

Halogen free target


In percentage	December 31, 2024 (base year)		December 31, 2025		December 31, 2035 (target year)
Halogen free sold products rate	93	%	95	%	98	%

The target, applicable between 2024 and 2035, is relative, expressed in a percentage of the total volume of sold products manufactured within ST’s own operations. The baseline value, is 93% of sold products manufactured within ST’s own operations in 2024 are halogen-free. In 2025 95% of sold products manufactured within ST’s own operations are halogen-free. The variation is mainly explained by product mix variations as explained below.

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For determining the percentage of halogen-free products, the ratio between sold products which are halogen-free and all sold products manufactured within ST's own operations is calculated. A product is called halogen free when chlorine, bromine, and/or fluorine are below a certain threshold whether combined or in isolation. Thresholds are defined by our ECOPACK classification (refer to Appendix 11.6.).

To set this target, we examined the likely potential improvement from this baseline until 2035, accounting for products that contain halogenated mold compounds that can be qualified with new materials. The 98% target was set accordingly.

The halogen-free monitoring methodology for this target is based on an ST specific methodology. As per December 31, 2025, the target is on track, with increase of halogen free product proportion compared to December 31, 2024. This increase is mainly due to the New Product Introduction, which intends to replace non-halogen free materials, by alternative halogen-free materials.

As part of our roadmap to reach 98% halogen‑free products by 2035, we have prioritized major back‑end product families using these materials and are working with our suppliers to qualify halogen‑free alternatives. As qualifying new halogen‑free materials and, where necessary, switching suppliers requires time due to extensive quality process and reliability testing, the effect on the share of halogen-free products will continue to appear progressively over time, supporting our 2035 target.

By setting this target, ST aims to prevent and control the emissions of pollutants and substances:

•by reducing halogenated materials in products, ST aims to limit halogen emissions to air;

•by reducing halogenated materials in products, ST aims to limit halogenated solid waste production from the manufacturing process and the products' end of life and thus limiting any release to soil; and

•by reducing emissions of substances of concern through the increase of halogen free products.

This target has been set based on scientific evidence that halogenated compounds, which are substances of concern, have a negative impact on the environment and human health.

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3.4.3.2.D.2. Metrics

Pollution of air, water and soil (E2-4)

Pollutant emitted to water


In kilogram		December 31, 2025	December 31, 2024
Pollutant emitted to water	Annual threshold as per E-PRTR	Global amount greater than annual threshold	Global amount greater than annual threshold
Chlorides (as total Cl)	2,000,000	0	2,020,992
Fluorides (as total F)	2,000	112,218	115,864
Total nitrogen	50,000	161,086	188,839
Total organic carbon (TOC) (as total C or COD/3)	50,000	54,177	59,655
Total phosphorous	5,000	9,545	7,517
Copper and compounds (as Cu)	50	2,113	1,797
Zinc and compounds (as Zn)	100	495	285
Phenols (as total C)	20	443	0
Nickel and compounds (as Ni)	20	130	92
Arsenic and compounds (as As)	5	84	61
Cadmium and compounds (as Cd)	5	70	51
Lead and compounds (as Pb)	20	35	32
Mercury and compounds (as Hg)	1	2	3

Pollutant emitted to air


In kilogram		December 31, 2025	December 31, 2024
Pollutant emitted to air	Annual threshold as per E-PRTR	Global amount greater than annual threshold	Global amount greater than annual threshold
Non-methane volatile organic compounds (NMVOC)	100,000	137,902	142,031
Vinyl chloride	1,000	91,944	89,082

As of December 31, 2025, ST emitted consolidated amount of water and air pollutants which exceeded the applicable threshold at site level. ST performed an analysis of the relevant pollutants listed in Annex II of the European Pollutant Release and Transfer Register Regulation (“E-PRTR”). ST performed an analysis to identify the number of pollutants locally measured out of the 91 pollutants listed in E-PRTR Annex II. This analysis is based on the Annex II of Regulation (EC) No 166/2006 and is consistent with the list used in 2024. The pollutants measured at site level are driven by local environmental permits. ST is monitoring E-PRTR developments notably newly published Regulation (EU) 2024/1244, whose updated Annex II will apply from 1 January 2028.

The amounts were consolidated and included only the emissions from facilities for which the applicable threshold value specified in Annex II of Regulation (EC) No 166/2006 was exceeded. As an example, for chloride, only one site exceeded the annual E-PRTR threshold in 2024 and the total amount of chloride for this site was presented in the table above. In 2025, this site managed to reduce its chlorides emissions to a level below the annual threshold, which resulted in zero in the table above. Where for fluorides, several sites exceeded the threshold both in 2024 and in 2025, and the amounts presented in the table above include the sum of their related emissions for each year.

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With regards to soil pollutants, they are not released by any ST manufacturing site according to the E-PRTR definition. E-PRTR defines soil pollutants as substances that are introduced into the soil. In the context of ST’s manufacturing processes, there is no significant pathway for these substances to become direct soil pollutants. ST sites adhere to environmental standards and controls, governing the handling, storage, and disposal of chemicals and other materials, and these processes are designed to minimize pollution, including soil pollution.

Overall, the variations between 2024 and 2025 related to pollutant emitted to water can be explained by production volume, decreased or increased need of wastewater treatment and corrected calculation related to conversion factor (for nitrogen) for one site. The 2024 total nitrogen figure has been restated from 111,040 kg to 188,839 kg to ensure year‑on‑year comparability.

The emissions of nitrogen and phosphorus (pollutant emitted to water) correspond to the emissions from the last treatment plant in which ST wastewater is treated, whether the waste water treatment plant is located within the ST premises or outside and whether it is public or private.

The pollutants emitted to air remained stable compared to 2024. The sites contributing to the amounts are similar to the previous year.

The monitoring and measurement methods of pollutant related to air or water depend on ST's policies and the environmental regulations in force in the country where the site is located. All relevant sites are subject to local permits. These permits include pollutants to be measured in line with local regulations. It also includes monitoring and control plan identifying the emission points to be monitored, the parameters, the monitoring frequency and the associated analytical methods.

The specific procedures by which external laboratories conduct the analytical measurements are displayed in each lab report. EU Best Available Techniques Reference Documents ("BREF") standards and other standards, where applicable, are required to be taken into consideration by local authorities in listing the parameters to be monitored, the monitoring frequency and the emission thresholds.

The local teams rely on external accredited laboratories to conduct periodical analyses identified by the monitoring plan as defined in ST policies. EHS local teams conduct emissions monitoring campaigns by sending sampling and analysis to external laboratories compliant with local environmental requirements. The frequency of the monitoring campaign depends on the sites or the pollutant. In any case, pollutants are measured at least on an annual basis and sometimes monthly, quarterly or bi-annually depending on local regulations. ST does not use estimates but direct measurement via monitoring systems calibrated by an external party for two manufacturing sites and periodic measurements performed by laboratories for the remaining perimeter.

In addition, spot measures are performed outside the period emissions measurement defined by the monitoring plan. For these measurements, the local teams also rely on external laboratories to perform analyses.

With regards to emissions to water, they relate to wastewater with two main destinations:

•water discharge to sewer; and

•water discharge to surface water.

Sites can release their wastewater to sewer or surface water, depending on the wastewater treatment plant network design implemented onsite. The monitoring can be measured on a daily basis when there is a local wastewater treatment plant.

ST does not generate nor use micro-plastics during production processes. It does not either procure, and does not have microplastics that leave the facilities as emissions, as products, or as part of products or services.

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Substances of concern and substances of very high concern (E2-5)

As part of its operating procedures, and in light of chemical regulations, ST is monitoring the list of substances of concern ("SOCs") coming from the Adaptation to Technical Progress 18 Table of the Regulation (EC) No 1272/2008 on the classification, labelling and packaging of substances and mixtures (CLP Regulation), as published by the European Chemicals Agency ("ECHA").

Additionally, substances of very high concern ("SVHCs") are substances that meet the criteria laid out in Article 57 of Regulation (EC) No 1907/2006 ("REACH"). This list of substances is identified in accordance with Article 59(1) of that regulation, and is published by the ECHA.

ST procures materials that may contain SOCs and SVHCs (e.g., raw materials, chemicals, and packaging). During ST’s operations, these substances may be used directly or may undergo processes that consume, transform, or release them. Following these operational steps, SOCs and SVHCs may remain in the final product or be present in emissions (air or water) or waste streams. ST does not manufacture any new SOCs or SVHCs as part of its operations.

A key area of complexity in the reporting process is designing an effective model to collect information from suppliers across a broad range of procured materials. This complexity is compounded by evolving external regulations and changes in measurement techniques, as highlighted in ST’s 2024 Annual Report under General Basis of Preparation – Sources of estimation and outcome uncertainty.

ST acknowledges the importance of this topic to its external stakeholders and is actively enhancing its data collection and management processes in response to this. In 2025, ST initiated a detailed review of its data collection process for this disclosure, which is still ongoing as the organization advances in its ESRS reporting maturity. At this stage, the robustness of the underlying data for SOCs and SVHCs metrics remains under review as the estimates depend heavily on supplier-provided information that often comes in broad concentration ranges for certain substances within mixtures.

This review requires further attention in 2026 and the assumptions taken last year may need to be revisited based on the continued analysis on data and processes.

3.4.3.3. Water (E3)

ST’s general water management approach

Addressing the challenges of water scarcity and wastewater treatment across our operations is part of our strategy. Population growth and climate change make it increasingly important to protect this shared natural resource. Our water management approach includes water stress assessments (performed by a third party on a inherent basis), conservation programs, water efficiency, and wastewater treatment. We strive to implement solutions to reduce water extraction and consumption, and we work closely with various stakeholders in the local communities where we operate.

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Water related IROs (SBM-3)

The following table lists the IROs related to water we have identified and assessed as material in our 2025 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

E3 – Water

Description

Type of IRO

Actual/

Potential

Value chain

segment

Time horizon

Material on a residual(1) or inherent(2) basis

ST response

Targets

Risk of increased water shortage or restrictions on water discharge for ST due to climate change-induced conditions/events, or due to decisions from public authorities imposing restrictions, leading to business interruption and higher costs

Risk

Potential

Own operations

Mid term

Residual basis

ST’s water program

We aim to have an annual water recycling rate of at least 60% by 2035 through implementing innovative programs (entity-specific).

We aim to annually save water reaching 6 million cubic meters of water saved by 2035 versus 2024 (entity-specific).

Risk of increased water shortage or restrictions on water discharge for foundries and OSATs due to climate change-induced conditions/events, or due to decisions from public authorities imposing restrictions , leading to business interruption, thereby affecting ST's operations

Risk

Potential

Upstream

Long term

Residual basis

ST's responsible supply chain program

No target in place

(1) "Residual" refers to the materiality assessment that takes into account existing mitigation measures.

(2) "Inherent" refers to the materiality assessment without taking into account any existing mitigation measures.

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3.4.3.3.A. Processes to identify and assess material water-related impacts, risks and opportunities

The water study performed in 2021 by an expert third-party, and the Climate Study, helped us understand the characteristics and impact of water scarcity.

The above analyses served as input for our 2025 DMA and considering that the manufacturing of semiconductors is water intensive, we have identified two potential material risks of increased water shortage for our own operations and for those of our subcontractors which carry out the same manufacturing activities as us.

The identification and management of these water-related risks are governed by our Global Environmental and Water Policy outlined in Section 3.4.3. (Environment - Policies).

Engagement with affected communities

For information on our engagement with affected communities, please refer to Section 3.4.2.3.B. (Interests and views of stakeholders).

We believe that conducting consultation, including with affected communities, is essential for working towards common goals and addressing water-related challenges. ST sites actively engage with affected communities in various ways and according to their specific needs and local context. This can include local NGOs, community organizations or town hall events to address community concerns. These engagements, although not standardized across all sites, provide critical insights that inform our decisions and activities aimed at managing our water-related risks.

For example, as part of the expansion of our site in Crolles, France, thorough research was conducted to understand and communicate our impacts in areas such as noise and water. A public consultation was held to present the project, allowing local stakeholders to understand the expansion and to voice any potential concerns. It included web conferences and open meetings with local stakeholders and employees. A dedicated project website was established, allowing stakeholders to ask questions and provide feedback.

3.4.3.3.B. Policies related to water

Our Global Water Policy details our ambitions to manage water-related risks, including risks of water shortages, across own operations and our expectations on water management towards our major subcontractors.

This policy is available on st.com for everybody, including potentially affected stakeholders and stakeholders who need to help implement it, and applies globally to all ST entities and all ST employees. ST’s CHRO is accountable for its implementation. Through our stakeholder engagement, as described in Section 3.4.2.3.B. (Interests and views of stakeholders) we are informed of the interests of our key stakeholders, which are taken into consideration by ST when setting the Global Water Policy.

The policy reflects our approach to managing water within our operations and supply chain. It states ST's ambitions for improved water efficiency and recycling, which rely on the establishment of water governance and the implementation of monitoring strategies. The Global Water Policy covers the following matters: (i) ST's use and sourcing of water in its own operations and (ii) ST water treatment as a step towards more sustainable sourcing. The policy is based on four key principles:

•commit to water preservation;

•managing water risks and opportunities;

•development of solutions that enable effective water management practices; and

•engaging with stakeholders.

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The various initiatives we are engaged in to address water-related risks, and to achieve enhanced monitoring are detailed throughout the policy document.

As part of our water management approach, which includes action plans to monitor ST's water consumption and increase recycling rates, thus mitigating risk on water shortages in ST operations. We have certifications for ISO 14001, as detailed in Appendix 11.8. Our manufacturing site in Shenzhen, China, is AWS platinum certified. ST is a member of the RBA, whose goal is to engage with suppliers and subcontractors to foster water management best practices, thus, amongst others, mitigating risk on water shortages in our supply chain. The RBA requires its members to implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination.

ST acknowledges that collaboration, education, and a comprehensive approach are fundamental for the effective management of water.

ST actively participates in industry best practice coalitions, such as the AWS, which provides a globally recognized framework to guide water management best-practices at ST manufacturing sites, including engaging with communities. Being a member of the AWS contributes to two main objectives included in the Global Water Policy: managing water risks and opportunities across ST operations and engaging with stakeholders.

ST engages in dialogue with communities located in areas in which we operate to understand their water-related challenges and expectations such as those described in Section 3.4.4.3.B. (Actions).

As mentioned in our Global Water Policy, ST acknowledges that water is a valuable and finite resource that is essential for people, society, communities, biodiversity, and the environment as a whole. ST is committed to managing its water use responsibly and sustainably, minimizing our impact on water resources.

As part of the policy ST:

•uses local water resources and converts a major proportion into ultra-pure water for its manufacturing processes and discharge all of them after treatment and control;

•applies strict water governance across all its plants, including water use, discharge, quality, and adherence to applicable laws and regulations;

•evaluates water flows and balance, enhancing water circularity, implementing smart monitoring strategies, seeking water-related innovations, investing to reduce its reliance on freshwater resources and improving operational resilience. ST follows rigorous procedures for the protection of water, rainwater, soil, and groundwater to preserve the natural environment and minimize any environmental risks; and

•aims to develop partnerships with customers to innovate in water management, efficiency, recycling, or treatment.

ST's Global Water Policy requires that water-management best practices be applied at all ST manufacturing sites, including the six sites located in high water stress areas, which include R&D sites as well as manufacturing sites.

3.4.3.3.C. Actions and resources related to water

To achieve the objectives of the Global Water Policy, ST has a water management process in place, that prioritizes best practices of water management and mitigation of risks of water shortages that could disrupt operations for both ST's and its subcontractors. The process includes documentation, characterization and monitoring of water sources, consumption and discharging, identifying opportunities to conserve water, and controlling channels of contamination.

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ST’s performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. ST’s major manufacturing sites are ISO 14001 certified , as detailed in Appendix 11.8. An overview of the certificates is also available on st.com.

This comprehensive approach helps to reduce ST’s environmental impact and supports the overall goal of sustainable development in the supply chain. We expect all our suppliers and subcontractors to have business practices and processes aligned with our Code of Conduct, the ISO standards and/or with the RBA Code of Conduct. Our largest manufacturing sites, and our suppliers' and subcontractors' sites identified as high risk, are subject to RBA third-party audits.

ST implements actions on all its manufacturing sites to improve water efficiency across its operations. Manufacturing semiconductors requires a large volume of water; we therefore strive to improve water efficiency across our operations. All of the following actions are continuous and ongoing to achieve the objectives of relevant policies and targets.

Action plans have been defined at site level, through dedicated water roadmaps for manufacturing sites, with designated water champions to help implement actions locally. Each site is responsible for creating its own roadmap according to the local context.

Some examples of actions implemented by ST manufacturing sites to reduce their water consumption include:

•proper monitoring of water consumption, for example through the implementation of smart water metering systems that identify consumption inefficiencies, leaks and water wastage;

•process optimization such as minimizing and standardizing water consumption in manufacturing
equipment in idle mode;

•improvement of drain segregation to increase recycling rates;

•recycling water issued from different technical systems including reverse osmosis and ultra
filtration systems;

•reuse of recycled water for internal industrial purposes such as cooling towers, scrubbers for air
emission treatment, and thermal processing units;

•addition of new wastewater management system to recycle water to produce ultra-pure water (see example below); and

•treatment of wastewater onsite or at municipal treatment plants prior to discharging it. Our manufacturing sites are continually improving their treatment of wastewater and the quality of
water discharge, which is carefully controlled and monitored online.

ST is engaged in various innovative projects to increase its water recycling rates. For example, at our site in Crolles, France, we started a pilot line to recycle part of the final aqueous discharges from the wastewater treatment plant. This involved launching a project to set up a recycling unit with the aim of producing ultra-pure water. This ultra-pure water can then be used in the manufacture of softened water and ultra-pure water, reducing the use of municipal water for industrial purposes. This process increases the water-recycling rate per hour.

In 2025 the ST site in Malta updated its wastewater treatment process, to recycle water used in manufacturing and domestic applications, enabling its integration into the ultra-pure water manufacturing process.

In parallel, we are a member of ESIA, the European arm of the WSC. As part of the WSC, ESIA is playing a leading role in advancing initiatives at the WSC ESH committee, including regarding water management. Through this unique forum, the global semiconductor industry is working together on collaborative approaches relating to, amongst others, resource conservation.

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All ST manufacturing sites, including the ST sites located in areas at water-risk, including areas of high-water stress, aim to improve their water management practices through the actions and certifications detailed above.

Finally, ST encourages its managers and employees to join volunteering initiatives aimed at improving access to safe drinking water for the communities located in the areas where we operate.

3.4.3.3.D. Metrics and targets related to water

3.4.3.3.D.1. Targets related to water (entity-specific)

In 2024, we set a voluntary entity-specific target to achieve an annual water recycling rate of at least 60% by 2035. Additionally, it is our aim to annually save water reaching 6 million cubic meters of water saved by 2035 versus 2024.

In line with our Global Water Policy commitments embedded in our Global Environmental Policy, these targets address the risk of water shortage and challenges of wastewater treatment.

Although no scientific evidence was used in setting these targets, based on the high-water consumption required in the manufacturing of semiconductor devices, lowering our water consumption is a continuous focus for ST.

In 2024, these entity-specific targets related to ST’s own operations: our fourteen main manufacturing sites, and one EWS site. In 2025, the target scope perimeter has increased to include the three large R&D sites as detailed in the table included in Appendix 11.9., with limited impact on the total 2024 amounts considering the sites activities and explained in the below paragraphs.

Progress toward these targets is monitored quarterly, as part of ST's water program (refer to Appendix 11.10.) and as described in Section 3.4.2.2. (Governance ).

Water recycling target

ST aims to have an annual water recycling rate of at least 60% by 2035.


In percentage (%)	December 31, 2024 (base year)		December 31, 2025		December 31, 2035 (target year)
Water recycling rate	53	%	51	%	60	%

The target related to our annual water recycling rate is relative to the total amount of water used annually, expressed as a percentage. The baseline value, reported in base year 2024, was 54% of water recycling rate based on below explained formula taking into account external recycling and based on initial perimeter of fifteen manufacturing sites. Based on the new perimeter, the baseline for the eighteen sites has been adjusted to 53%. In 2025 the water recycling rate was 51%.

As of December 31, 2025, ST considers progress towards the water recycling target to be on track. Several recycling projects are planned for coming years and are expected to increase the recycling rate. A temporary decrease has been observed due to transition phases where old equipment is decommissioned while new equipment is not yet fully operational; the recycling rate is expected to increase once new installations are fully functioning.

The water recycling target has been calculated starting from 2024 baseline and applying the saving in cubic meter per year anticipated by all existing projects included in our sites' budget plan. Simulating the recycling, after implementation of all these projects, the final result obtained was a 60% recycling rate by 2035.

The water recycling rate is accounting for both internal and external recycling and is computed as follows: C+R / W+C+R, whereby: (i) C = onsite reused and recycled wastewater used; (ii) R = externally reused and recycled wastewater used; and (iii) W= external sources of water used (including rainwater). The C is equivalent to the total water recycled presented in the E3-4 water consumption, where the water

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consumption is also described. The R and W are collected via the dedicated meters at site level and reported monthly.

Water savings target

ST has set a voluntary water saving target to achieve cumulative savings of 6 million cubic meters of water by 2035 compared to the 2024 base year.


In m3	December 31, 2024 (base year)	December 31, 2025	December 2035 (target year)
Water saving (Cumulative)	—	959,147	6,000,000

As these projects started as of 2025, the baseline value of 2024 was 0 cubic meters of water saved. In 2025, 959,147 cubic meters of water were saved due to seventeen projects. This result is in line with the target trajectory defined by all projects.

The target is absolute and measured in cubic meters of water saved, based on the contribution of water‑saving projects implemented at sites. The water saving target relates to the absolute volume of water consumption saved annually and has been set by taking into account the list of water saving projects included in sites' budget plan, accordingly, a cumulative saving of 6 million cubic meters of water has been estimated.

Projects savings are accounted for after project completion, and once measurement instruments are operational. Savings are reported for a full year after completion. For example, if a project is completed on September 30, 2025, the savings are recorded from Q4 2025 until the end of Q3 2026. It means in the above table, and in this case, only one quarter saving has been accounted for, and the remaining quarters will be accounted for in the next reporting period. The target is monitored monthly at site level and consolidated quarterly to ensure full alignment and to make adjustments as needed regarding project timeline and target trajectory.

Facility projects that contribute to the water recycling and water saving targets follow a structured lifecycle (pre‑execution, execution and post‑execution). At site level, projects are identified and assessed for feasibility, and appropriate indicators, monitoring methods and metering requirements are defined. After implementation, savings and recycling contributions are measured (using direct, indirect or engineering‑based methods), monitored for at least one year and accounted for one year as explained above.

By setting this target, ST addresses the management of material impacts, risks and opportunities related to areas at water risk and those at high water-stress, and reducing water consumption, in line with the focus of our Global Water Policy, detailed in Section 3.4.3.3.B. (Policies related to water).

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3.4.3.3.D.2. Metrics

Water consumption (E3-4)

Water consumption


In cubic meter	December 31, 2025	December 31, 2024
Total water consumption	5,051,321	5,072,354
Total water consumption in areas at water risk (incl. areas of high-water stress)	1,402,552	1,391,169
Total water recycled	15,374,447	15,927,655
Total water stored	17,767	14,124
Changes in water storage	—	—
Water intensity ratio : total water consumption in its own operations in m3 per million USD net revenue	428	382

In 2025, the total water consumption of ST amounted to 5,051,321 m3 out of which 1,402,552 m3 in areas at water risk which include areas of high-water stress. Water consumption is stable compared to prior year, consistent with stability of global operations. This year the total amount include the consolidated financial statement perimeter as presented in the Section 3.4.2.1. (General basis for preparation (ESRS 2 BP 1 and BP 2)). The data is sourced from direct measurements or calculated from measurements notably regarding raw water incoming. In very few cases, the data is estimated for the recycled volume (3% of the total value is estimated) or the discharge water amount (1% of the total value is estimated).

Water consumption

The water consumption represents the amount of water drawn into the boundaries of the undertaking (or facility) and not discharged back to the water environment or a third-party over the course of the reporting period. At ST, the amounts of water drawn into the boundaries are sourced from direct measurement (i.e. meter reading) and water discharge amounts are either sources from direct measurement (upon the existence of a flow meter at site level), result from a ratio determined at the site level, invoices or estimation. The ratio used depends on various factors, such as the rate of water evaporation and the irrigation system. Water discharges can come from discharge in surface water or discharge in sewers.

For the non-manufacturing sites, ST adopted a conservative approach and considered the full water withdrawal as consumed. The water withdrawal is determined either by direct measurement (based on the invoice received from the supplier) or by estimation using data from a similar site with comparable employee numbers and geographic location. This methodology is applied consistently across the non-manufacturing sites, and it represents less than 1% of the total amount.

Water consumption in areas at water risks

In 2025, the areas of high-water stress identified in 2024 using the Aqueduct Water Risk Atlas tool of the World Resources Institute were reviewed to ensure consistency and identify any change. Areas at water risk and areas of high-water stress have been identified following the definition from the Annex of the CSRD. Six sites, out of which two main R&D sites, were present in areas at water risk in 2024 and remain in 2025. No additional sites have been identified in 2025.

Water recycled

As of December 31, 2025, total water recycled amount to 15,374,447 (15,927,655 m3 as of December 31, 2024). The decrease is consistent with the decrease of water consumption and production variations.

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Water recycled is defined as water that has been used more than once before being discharged from the undertaking, so that water demand is reduced. The total water recycled is calculated based on the difference between the total of water needs (or used) and the total water withdrawn (from wells or city aqueduct). As such it derives from a combination of direct measurement and the use of a specific ratio as explained for water consumption.

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Water stored

As of December 31, 2025, total water stored amount to 17,767 (14,124 m3 as of December 31, 2024). The water volume considered for water storage corresponds to the total amount of water held in water tanks for fire safety purposes. An external body is monitoring these tanks, as part of ST property damage and business interruption insurance program. It provides a report including water volumes. The variation on total water stored is due to a review of our storage capacity done in 2025. The capacity related to our water tanks did not change between 2024 and 2025. As such, the change in water storage is nil. Indeed, the change in water storage under normal conditions are not significant as mainly due to limited evaporation or ad-hoc needs during the year.

3.4.3.4. Waste and circular economy (E5)

ST general approach and commitments to waste and circular economy

We strive to reduce waste by minimizing resource consumption, recycling, and implementing circular economy programs.

Generating waste is an inevitable part of our operations. Recognizing this, we have developed a waste management strategy to limit our negative impacts. We focus on the classification, separation, and safe disposal of waste using an approach driven by local regulations and company policy. Our priority is to reduce, prepare for reuse, and recycle and we consider landfill and incineration to be a last resort.

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Waste related IROs (SBM-3)

The following table lists the IROs related to waste we have identified and assessed as material in our 2025 DMA, including the programs or dedicated actions and (entity-specific) targets, we have in place to address such IROs.

E5 – Waste and circular economy

Description

Type of IRO

Actual/

Potential

Value chain

segment

Time horizon

Material on a residual(1) or inherent(2) basis

ST response

Targets

Negative impact from ST on the environment from waste directed to disposal (i.e. landfill, incineration)

Negative impact

Actual

Own operations

Short term

Residual basis

ST’s waste and circular economy program

We aim, each year, to reuse, recycle, and recover at least 95% of our waste, and to limit waste disposal to below 5%

Negative impact from suppliers, foundries and OSATs on the environment from waste directed to disposal (i.e. landfill, incineration)

Negative impact

Actual

Upstream

Short term

Residual basis

ST's responsible supply chain program

No target in place

Potential negative impact on the environment at the end of life of our products due to the residual presence of harmful materials

Negative impact

Potential

Own operations

Long term

Inherent basis

ST’s substances and chemicals program

No target in place

(1) "Residual" refers to the materiality assessment that takes into account existing mitigation measures.

(2) "Inherent" refers to the materiality assessment without taking into account any existing mitigation measures.

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3.4.3.4.A. Processes to identify and assess material waste-related impacts, risks and opportunities

We screened our sites and identified material negative impacts on the environment from waste directed to disposal generated by our own operations and subcontractors' activities due to the nature of related manufacturing processes and limited capacity of recycling infrastructures. To identify material waste-related impacts, risks and opportunities for our suppliers, we also considered the broad range of activities they provide to us.

Based on the analysis conducted, waste directed to disposal generated by our own operations is lower compared to that generated by subcontractors and suppliers. However, the materiality of our own operations is primarily driven by the total volume of waste produced.

Regarding residual presence of harmful materials in our products, we recognize the importance of this topic and the potential negative environmental impacts. Our assessment considered the current state of waste management technology as well as the breadth of our product portfolio.

Engagement with affected communities

For our engagement with our affected communities reference is made to Section 3.4.2.3.B. (Interests and views of stakeholders). We believe that conducting consultation, including with affected communities, is essential for working towards common goals and addressing waste-related challenges. ST sites actively engage with affected communities in various ways and according to their specific needs and the local context. This can include local NGOs, community organizations or town hall events to address community concerns. These engagements, although not standardized across all sites, provide critical insights that inform our decisions and activities aimed at managing our waste-related impacts and risks.

3.4.3.4.B. Policies related to waste

Our Global Environmental Policy, which is available on st.com for everybody, including to potentially affected stakeholders and stakeholders who need to help implement it, states the company's commitments to limit impacts on the environment, and supports ST's response to and management of its potential negative impacts on the environment resulting from generation of residual waste from our own operations, from the operations of our suppliers and subcontractors, and the residual presence of harmful materials in the products.

Waste management and the introduction of circular economy principles to ST activities are integral parts of our Global Environmental Policy, highlighted below:

•strive for pollution prevention, reduced consumption of natural resources, reduction of waste, maximized recycling and circular economy, biodiversity protection and minimized impact of chemical substances on people and the environment; and

•incorporate environmental criteria into all stages of product life cycle, from the design phase to
procurement, manufacturing, sales, and end of life.

ST's efforts are focused on prioritizing reduction, preparation for reuse, recycling and recovery in the waste hierarchy, and to consider landfilling and incineration as a last resort. This policy therefore aims to address the generation of residual waste and waste sent to landfill.

To monitor and manage the potential negative impacts on the environment (landfill, waste treatment) resulting from generation of residual waste from our own operations, from the operations of our suppliers and subcontractors, and the residual presence of harmful materials in the products, our Global Environmental Policy states commitments to implement control measures, and audits to check that environmental procedures applicable to waste are carried out; to identify and prioritize areas for improvement; and to improve ST's environmental performance.

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As referenced in our Global Environmental Policy, we strive to develop long term relationships with our suppliers and subcontractors choosing those with the highest responsible environmental standards and practices, which helps us to address a range of environment issues, including, materially, potential negative impacts from our residual waste and certain substances at the end of life of our products. This objective notably involves participating in industrial programs.

As mentioned in our Global Environmental Policy, we are committed to maintain relevant environmental certifications for our sites, namely ISO 14001 certification and the RBA standard. These standards apply to our operational procedures regarding residual waste from our own operations, from the operations of our suppliers and subcontractors and our management systems are designed to comply with them.

ST employees, suppliers, partners and other stakeholders are important for successful implementation of the policy, and therefore ST seeks to:

•provide appropriate training to all our employees and all necessary information to our stakeholders;

•develop long term relationships with our suppliers and partners choosing those with the highest
environmental standards and practices;

•promote environmental responsibility amongst employees; and

•transparently communicate ST's environmental policies, practices, and impact to
stakeholders.

3.4.3.4.C. Actions and resources related to waste

We implemented tailored actions related to waste and circular economy to address its negative impacts on the environment arising from our own operations and, where relevant, from the operations of our suppliers and subcontractors, arising from residual internal waste and residual presence of harmful materials in our products at the end of their life. All actions are continuous and ongoing to achieve the objectives and targets set in connection with related policies and in 2025 have contributed to ST reaching its target as referenced in Section 3.4.3.4.D.1.(Targets related to waste).

Our waste management process prioritizes recycling over disposal in the manufacturing process to address one of its potential negative impacts by avoiding landfill and incineration. Specific site-level action plans, comprising the actions referenced below, have been defined, amongst others, to increase recycling rates. ST’s performance and management systems are evaluated annually through third-party surveillance audits, and we aim to renew our certifications every three years. ST’s major manufacturing sites are all certified (please refer to Appendix 11.8. and st.com for an overview of these certifications).

ST addresses negative impact from waste from suppliers’ and subcontractors’ operations by requiring suppliers and subcontractors to adhere to RBA standards and to implement a systematic approach to identify, label, manage, reduce and responsibly recycle or dispose of waste.

Considering the waste hierarchy, ST implements various actions to reduce waste generation and prepare waste for reuse across all its manufacturing sites (please refer to Appendix 11.5. and st.com for an overview of these sites).

Examples of ST's continuous actions in 2025 include:

•the reduction of liquid and hazardous waste generation, at the Crolles site, France, the teams implemented a project to reduce chemical consumption, resulting in a reduction of waste generation during the wet process; and

•at the Rousset site, France, propylene wafer boxes used to ship wafers from our suppliers to our site, which have become waste for us, are sent for cleaning and then reused in the semiconductor value chain.

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Considering the waste hierarchy, ST also implements actions to enhance recycling and recovery of waste generated from its manufacturing sites, to address one of its potential negative impacts by reducing and reusing waste generated within its operations. ST strives to increase recycling rates and implement solutions to create value from waste generated by our activities, by converting waste into secondary raw materials that can be used in other industries.

Examples of ST's continuous actions in 2025 include:

Waste generated in the manufacturing process:

•recycling of paper, card box, plastics, wood and plastic packaging trays deployed in most of ST sites for many years;

•recycling sludge waste into secondary raw materials and building materials is exemplified by our site in Ang Mo Kio, Singapore, which partners with ESGL Holdings Limited. The sludge was used to develop a new material called newspar, which replaces fluospar, a critical raw material. Newspar is applied in the production of construction material;

•recycling of metals through dismantling electronic waste and scrapped devices, with different partners across ST operations;

•at the Crolles site, recycling of silicons and metals from scrapped devices to limit extraction and transportation of virgin materials. The scrapped wafers are sent to a foundry, where they are added to aluminum during the melting process. The resulting aluminum is used in automotive, aeronautics and solar panel manufacturing; and

•recycling of spent resin to transform it into construction materials, for example at ST's Shenzhen and Calamba sites, the waste is used in brick production, while at the ST Muar site, it is utilized for road construction materials, extending the useful life of resources.

Beyond manufacturing waste:

ST has taken action to manage waste generated in supporting areas, including:

•implementation of organic waste composting to reduce the amount of waste sent to landfills;

•improvement of waste segregation in administrative areas and increasing awareness of effective separation at the source of waste generation reduces the amount of disposed waste; and

•donation and recycling of various technology hardware.

ST also implements programs to address end-of -life management at a global level in our own operations:

•implementation of ECOPACK processes and classification to monitor the substances used in our products, and to take action on replacement of certain harmful materials where feasible, which in turn facilitates end of life and recycling when our devices are disposed of and

•improving end-of-life management and recycling through ST's Product Sustainability Program. This program aims to promote circularity and recycling initiatives, potentially leading to new services provided to customers, or any initiatives increasing levels of recycled materials in products. In 2025, the program has established the strategy for more recycled content in ST products, considering the list of critical and strategic raw materials, customer needs and evolution of legislation. Various key customers interested to collaborate in end of life projects and other projects related to circularity were identified and some opportunities are currently under evaluation.

Collaboration:

ST continues to participate in collaborative R&D projects that aim to integrate end-of-life management constraints into the development and design processes of electronic products to address negative impacts including the residual presence of harmful materials and dependencies on finite resources, such as:

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•In 2025, for the project EECONE (European Ecosystem for Green Electronic) ST participated as a semiconductor and substrate data provider, mapping raw materials and waste flows at each stage. As an industrial partner, ST contributes to developing and testing new recycling solutions and circular loops by reintroducing recycled materials into its production chains. ST also provides specific industrial cases to implement and validate the feasibility of innovative recycling solutions.

•ST joined another European project: GENESIS (Generate in Europe a Sustainable Industry for Semiconductor), which aims to improve resource efficiency and reduce the environmental footprint of IC manufacturing through enhanced process sustainability, increased recyclability, reduction of critical raw materials and toxic compounds, and implementation of solutions for material recovery.

Transparency:

Based on, amongst others, the RBA Code of Conduct, ST identifies, labels and manages waste, chemicals and other materials posing a hazard to people or the environment to ensure their safe handling, movement, storage, use, recycling or preparation for reuse, and disposal. Hazardous waste data is tracked and documented. Application of the RBA framework is assessed and verified through dedicated RBA audits.

3.4.3.4.D. Metrics and targets related to waste

3.4.3.4.D.1.Targets related to waste

ST has set a voluntary target to, recycle, recover and prepare for reuse at least 95% of our waste, and to limit waste disposal to below 5% per year. This target relates primarily to the preparation for reuse, recycling and other recovery layers of the waste hierarchy, and to the minimization of disposal (landfill and incineration without energy recovery).

Waste related target


In percentage	December 31, 2024		December 31, 2025
Waste prepared for reuse, recycled and recovered	97	%	97	%
Waste disposal rate	3	%	3	%

Our performance in 2025 was the same as in 2024, with a 97% recycling, recovery and preparation for reuse rate, with a waste disposal rate of 3%. As in 2024, the target was achieved in 2025 as disposal rate remained below 5% and the recycling, recovery, and preparation for reuse rate remained above 95%.

In line with our Global Environmental Policy, this target addresses our impact on the environment resulting from generation of residual internal waste by reducing resource consumption, increasing recycling and implementing circular economy programs.

The target level, scope, and calculation methodology were first defined in 2024 and remain unchanged in 2025. This target is relative to total waste generated per year and is expressed as a percentage. This target relates to ST own operations: our fourteen main manufacturing sites, three large R&D sites and one EWS site, as detailed in the table included in Appendix 11.9.

By setting this target, we address resource outflows and in particular waste management: the target is aimed at reducing the waste generation, maintaining our very high rates of preparation for reuse, recycle and recovery through extending the lifecycle of materials, and aimed at maintaining our performance in limiting the amount of waste disposed in landfills.

No specific scientific evidence was used in setting this target, rather this target was deduced by maintaining the current performance, promoting waste segregation and diversification in manufacturing sites and considering new opportunities of recycling for the remaining waste today at landfill.

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Waste management options are influenced by external factors, notably local legal requirements and the availability and capabilities of recycling and recovery facilities in the regions where ST operates. Certain strictly regulated waste types must be sent to landfill or incineration without energy recovery. Due to these waste types, ST will always retain a residual fraction of waste going to disposal and therefore cannot reach 100 % diversion. Please refer to Section 3.4.3.4.D.2. (Metrics - Resource outflows (E5-5)) for details.

Waste management performance is measured through diversion and disposal rates, expressed as percentages of total waste generated from ST Operations. For each reporting year, ST calculates the diverted rate as the volume of waste sent to preparing for re‑use, recycling and incineration with energy recovery divided by total waste generated, and the disposal rate as the volume of waste sent to landfill and incineration without energy recovery divided by total waste generated.

Progress toward these targets is monitored quarterly, as part of ST’s waste & circular economy program (refer to Appendix 11.10.) and as described in Section 3.4.2.2. (Governance ).

3.4.3.4.D.2. Metrics

Resource outflows (E5-5)

As per the DMA, the matter associated with resource outflows which is material for ST relates to the management of waste from our own operations.

Total waste diverted from and directed to disposal


In kilogram	December 31, 2025	December 31, 2024
Total amount of waste by weight diverted from disposal	71,703,683	74,499,266
Total amount of waste by weight directed to disposal	3,036,499	2,194,100
Total amount of waste generated	74,740,182	76,693,366

As of December 31, 2025, ST generated a total amount of waste of 74,740,182 kg, out of which 71,703,683 kg of waste by weight diverted from disposal and 3,036,499 kg of waste by weight directed to disposal. The changes from 2024 are explained below under the relevant detailed tables.

For non-manufacturing sites, the quantity of waste generated is very low. Due to the difficulty in obtaining the exact measurement of waste generated by these sites, ST decided to estimate that amount. Based on the direct measurement of two of the biggest non-manufacturing sites, ST determined an average of waste generated per employee and applied it consistently across all the smaller non-manufacturing sites. The total estimated represents less than 1% of the total waste generated by ST. For 2025, ST included this estimation under the categories non-hazardous waste, waste directed to disposal, waste non-recyclable and waste by weight directed to disposal by landfilling in the tables below.

Waste, per the ESRS definition is understood as any substance or object which the holder discards or intends or is required to discard.

Total hazardous and non-hazardous waste


In kilogram	December 31, 2025	December 31, 2024
Total amount of hazardous waste	31,207,889	30,231,630
Total amount of non-hazardous waste	43,532,293	46,461,736
Total amount of waste generated	74,740,182	76,693,366

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In this reporting year, ST generated a total amount of waste of 74,740,182 kg, out of which 31,207,889 kg of hazardous waste. The increase of the hazardous waste is due to operational considerations around maintenance and management of quality of water.

Breakdowns on the hazardous waste directed to or diverted from disposal along with non-hazardous waste directed to or diverted from disposal are presented in tables below.

Hazardous waste follows the standard definition i.e. waste which displays one or more of the hazardous properties listed in Annex III of Directive 2008/98/EC of the European Parliament and of the Council on waste.

Total recyclable and non-recyclable waste


In kilogram	December 31, 2025		December 31, 2024
Total amount of recyclable waste	58,936,355		61,357,836
Total amount of non-recyclable waste	15,803,827		15,335,530
Total amount of waste generated	74,740,182		76,693,366
Percentage of non-recyclable waste	21	%	20	%

The total amount of non-recycled waste amounted to 15,803,827 kg representing 21% of the total amount of waste in this reporting year. This amount increased versus prior year due to the inclusion of the non-manufacturing sites amount, and operational constraints from waste treatment providers. Non-recycled waste includes waste diverted from disposal due to preparation for reuse and other recovery operations, as well as waste directed to disposal.

The following waste streams are captured in our environmental system: process waste (e.g., acids, chemicals, oil), treatment waste (e.g., filters, grease), toxic and toxic building waste (e.g., asbestos, UV tubes, arsenic contamination items), equipment waste (e.g., tools used in plants), packing and packaging waste (e.g., cardboard boxes, glass container, wood pallets), paper waste (e.g., printout, office form) and other waste (e.g., cafeteria or canteen waste).

Each site is responsible for classifying and segregating its waste according to the classification system used in its national, regional or local laws. It includes determining the level of contaminants in the waste via chemical analysis, and managing each type as a distinct waste stream.

The information are included in a waste manifest provided by waste treatment third-party provider. This formal, legally required document is used to track hazardous or regulated waste from generation to final treatment or disposal. It represents the primary data source providing both the classification of waste into the requested categories (e.g., recycled, disposed, incinerated with or without energy recovery) and the total weights for each stream. The type of treatment of the waste, whether diverted from disposal or directed to disposal, is provided by the external vendor.

The related data are collected monthly in an environmental tool used by the sites. Depending on the type of waste and the site, volumes of waste generated by a site can be either estimated based on history, weighed onsite or weighed on waste treatment plant’s site. In the latter case, volumes are communicated to local teams via invoices, waste manifest or receipt slips. In any case, the amount estimated or weighed are being reconciled with invoices or waste manifest. The late reception of certain invoices by external providers, sometimes due to national legislation, result in potential estimated amounts in quarterly reporting. As estimate, the last weighted available amount by an external vendor is used. However, for consolidated reporting year 2025 data, no estimated amount were used as reconciliation with invoices or waste manifests have been performed for all the sites in the perimeter.

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ST does not generate any radioactive waste.

Breakdown of total amount of waste by weight diverted from disposal by recovery operation types


In kilogram	December 31, 2025	December 31, 2024
Total amount of hazardous waste by weight diverted from disposal due to preparation for reuse	3,556,499	3,077,146
Total amount of hazardous waste by weight diverted from disposal due to recycling	20,919,815	20,356,882
Total amount of hazardous waste by weight diverted from disposal due to other recovery operations	5,582,792	5,739,058
Total amount of hazardous waste by weight diverted from disposal	30,059,106	29,173,086
Total amount of non-hazardous waste by weight diverted from disposal due to preparation for reuse	445,581	561,634
Total amount of non-hazardous waste by weight diverted from disposal due to recycling	38,016,539	41,000,954
Total amount of non-hazardous waste by weight diverted from disposal due to other recovery operations	3,182,457	3,763,592
Total amount of non-hazardous waste by weight diverted from disposal	41,644,577	45,326,180
Total amount of waste by weight diverted from disposal	71,703,683	74,499,266

Out of the total of waste diverted from disposal, 30,059,106 kg relate to hazardous waste and 41,644,577 kg relate to non-hazardous waste. Compared to previous year, the former increased while the latter decreased. For hazardous waste, diversion rose due to higher volumes being prepared for reuse and recycled; this improvement is mainly driven by new waste management methods for certain waste streams that were previously treated as directed to disposal. By contrast, diversion of non-hazardous waste decreased mainly due to changes in waste mix and the reduced availability of certain waste treatment vendor specialized in recycling.

Above table presents the total amount by weight of hazardous waste and non-hazardous waste diverted from disposal in this reporting year, broken down by different recovery operations: preparation for reuse, recycling and other recovery operations.

Preparing for re-use needs to be understood as checking, cleaning or repairing recovery operations, by which products or components of products that have become waste are prepared so that they can be re-used without any other pre-processing. This definition follows the Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste.

The recycling waste amount captures any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original or other purposes. It does not include energy recovery and the reprocessing into materials that are to be used as fuels.

Other recovery operations represent any operation the principal result of which is waste serving a useful purpose by replacing other materials which would otherwise have been used to fulfil a particular function, or waste being prepared to fulfil that function, in the plant or in the wider economy. At ST, other recovery operations include hazardous waste and non-hazardous waste being burnt. This operation covers thermal treatment of waste with recovery of the combustion heat.

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Breakdown of total amount of waste by weight directed to disposal by waste treatment types


In kilogram	December 31, 2025	December 31, 2024
The amount of hazardous waste by weight directed to disposal by incineration	988,139	838,080
The amount of hazardous waste by weight directed to disposal by landfilling	160,644	220,464
The amount of hazardous waste by weight directed to disposal by other disposal operations	-	-
The amount of hazardous waste by weight directed to disposal	1,148,783	1,058,544
The amount of non-hazardous waste by weight directed to disposal by incineration	92,580	177,990
The amount of non-hazardous waste by weight directed to disposal by landfilling	1,795,136	957,566
The amount of non-hazardous waste by weight directed to disposal by other disposal operations	-	-
The amount of non-hazardous waste by weight directed to disposal	1,887,716	1,135,556
Total amount of waste by weight directed to disposal	3,036,499	2,194,100

Out of the total of waste directed to disposal, 1,148,783 kg relate to hazardous and 1,887,716 kg relate to non-hazardous waste. Between 2024 and 2025, the total amount of waste directed to disposal increased. For hazardous waste, the increase is primarily due to changes in available treatment routes, which led to higher volumes being sent to incineration. This was partly offset by successful change in waste management practices and the availability of alternative treatments, which reduced hazardous waste sent to landfill. For non-hazardous waste, the increase was mainly driven by the inclusion of non-manufacturing sites, and their related classification in waste by weight directed to disposal by landfilling, and by the temporary unavailability of the usual recovery or recycling routes. Above table presents the total amount by weight of hazardous waste and non-hazardous waste directed to disposal in this reporting year broken down by waste treatment type such as incineration, landfill and other disposal operations.

Incineration refers to the controlled burning of waste at high temperature without recovery of the combustion heat generated. Landfill relates to a waste disposal site for the deposit of the waste onto or into land.

Waste at ST does not follow any other disposal operations.

3.4.3.5. EU Taxonomy

3.4.3.5.1. The EU Taxonomy Regulation

On July 12, 2020, the EU Taxonomy Regulation entered into force. The EU Taxonomy Regulation establishes the basis for a classification system to determine which economic activities can be considered environmentally sustainable. The EU Taxonomy Regulation is part of the EU's overall efforts to reach the objectives of the European Green Deal, Europe's strategy towards climate neutrality in 2050. The EU Taxonomy Regulation is designed as a transparency tool to help companies and investors make sustainable investment decisions, with the overall purpose to steer financing towards more sustainable economic activities. Pursuant to the EU Taxonomy Regulation, we are required to disclose information on how and to what extent our activities qualify as environmentally sustainable. The EU Taxonomy Regulation was implemented in phases and is likely to further develop over the coming years.

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Consequently, disclosure obligations under the EU Taxonomy Regulation will develop over the coming years. This particularly holds true as the EU Taxonomy Regulation is subject to the Omnibus Proposal. On July 4, 2025, the European Commission adopted a Delegated Act amending the existing Taxonomy Disclosures and Climate and Environmental Delegated Acts (Commission Delegated Regulation (EU) 2026/73). ST has taken these amendments into account, with the only noticeable change being the use of the new reporting templates.

Environmental objectives

The EU Taxonomy Regulation defines overarching conditions which an economic activity must meet to be considered environmentally sustainable and focuses on six environmental objectives, being (i) climate change mitigation, (ii) climate change adaptation, (iii) the sustainable use and protection of water and marine resources, (iv) the transition to a circular economy, (v) pollution prevention and control and (vi) the protection and restoration of biodiversity and ecosystems. For these environmental objectives, several delegated acts have been issued containing technical screening criteria (“Taxonomy technical screening criteria”), which specify environmental performance requirements for the economic activities to be classified as environmentally sustainable (“EU Taxonomy Delegated Acts”).

On January 1, 2022, the EU Taxonomy Delegated Act on climate change mitigation and climate change adaptation entered into force. The EU Taxonomy Delegated Acts on the other four environmental objectives entered into force on January 1, 2024, as well as the amended EU Taxonomy Delegated Acts on climate change mitigation and climate change adaptation (the "Climate Delegated Acts").

Eligibility and alignment

From 2022 onwards, as a non-financial undertaking, we have to disclose information on our economic activities which are eligible (“Taxonomy-eligible”), non-eligible ("Taxonomy non-eligible") and aligned (“Taxonomy-aligned“) under the EU Taxonomy Regulation.

An economic activity can be considered Taxonomy-eligible when the economic activity is described as such in the relevant EU Taxonomy Delegated Act. To assess whether the relevant economic activity can also be considered Taxonomy-aligned, an additional evaluation must be made to identify if the overarching Taxonomy technical screening criteria are met. Economic activities that are not described in the EU Taxonomy Delegated Acts are considered Taxonomy non-eligible.

3.4.3.5.2. Applicability of the EU Taxonomy Regulation to ST

As a listed company the EU Taxonomy Regulation is applicable to us, and subsequently, we must disclose information on how and to what extent our economic activities are associated with economic activities that qualify as environmentally sustainable under the EU Taxonomy Regulation.

For 2025, the review of our economic activities for Taxonomy-eligibility under the environmental objectives listed in the EU Taxonomy Delegated Acts has not resulted in any change compared to our reporting over 2024. While some of our activities are eligible in relation to climate change mitigation and climate change adaptation, they are not eligible as regards the other four environmental objectives described in the EU Taxonomy Delegated Acts.

For 2025 in relation to climate change mitigation, we hereinafter include disclosure of: Taxonomy-eligible and Taxonomy-aligned economic activities, within our turnover, capital expenditure and operating expenditure.

The following disclosures pursuant to the EU Taxonomy Regulation are based on the most recent interpretations of the EU Taxonomy Regulation as published by the European Commission. Acknowledging that the EU Taxonomy Regulation is still under development and its interpretation and

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application is evolving, our disclosure approach under the EU Taxonomy Regulation might consequently evolve accordingly.

Environmentally sustainable activities

Under the EU Taxonomy Regulation an economic activity is considered environmentally sustainable (“EU Taxonomy-aligned”) if it meets the following conditions:

(1)provides a substantial contribution to one of the six above-mentioned environmental objectives;

(2)does not significantly harm any of the other environmental objectives (i.e. does not support one environmental objective at the expense of progress on another environmental objective) (“DNSH”); and

(3)complies with internationally recognized minimum safeguards (e.g., OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights) (“MSS”).

We assessed our economic activities against the EU Taxonomy Regulation classification system in various steps, amongst others: (i) identifying the economic activities relevant for the EU Taxonomy Regulation disclosure, (ii) performing a Taxonomy-eligibility assessment based on the relevant EU Taxonomy Delegated Act, and (iii) assessing Taxonomy-alignment of the economic activities. For the disclosure of Taxonomy-eligibility and Taxonomy-alignment we assessed the proportion of our turnover, capital expenditure and operating expenditure, related to environmentally sustainable activities.

Enabling economic activity

We believe that the semiconductor industry plays a key role as a strategic enabler of a low carbon society as well as to manage the transition towards carbon neutrality. As part of our value proposition, we aim at designing and manufacturing products that are power efficient and support our customers in developing technologies that have low carbon footprint. Low carbon applications such as electric mobility, renewable energies, smart cities, or smart building have been and remain strategic markets for us. We are a market leader in the design and manufacturing of power solutions and motor control enabling products, in which there are ample opportunities for short-term impact on GHG emissions. We are also a market leader in terms of ultra-low power ICs such as sensors or microcontrollers.

While some sectors contribute directly to climate change mitigation and climate change adaptation, we, as an intermediate product manufacturer, enable “the manufacturing of low-carbon technologies”, which activity is also covered by the EU Taxonomy Regulation classification system. Our activities which aim at contributing to climate change mitigation and climate change adaptation, are the manufacturing of electronic components that enable other sustainable economic activities and applications. The relevant EU Taxonomy Delegated Act lists economic activities that may be considered taxonomy-eligible based on associated so-called NACE codes. For our Taxonomy-eligibility we report on NACE code 26: “Manufacture of computer, electronic and optical products”; and NACE code 26.11: “Manufacture of electronic components”. NACE code 26.11 is considered relevant for the semiconductor market as confirmed in the guidance published on the interpretation of the EU Taxonomy Regulation by the European Commission in October 2022. For financial year 2025, we therefore continue reporting under activity 3.6 of the EU Taxonomy Delegated Act on Manufacture of low carbon technologies.

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Our EU Taxonomy-eligibility assessment

In our Taxonomy-eligibility assessment we identified all our products, which aim at contributing substantially to climate change mitigation. These products are divided into the following four product categories: (i) products that have a low carbon manufacturing footprint compared to similar products of a previous generation, (ii) products that have low power consumption or low power loss characteristics compared to similar products manufactured by us or others, (iii) products that bring an advantage to run a low GHG emission end application or (iv) products that bring an advantage to improve efficiency of high GHG emitting end applications.

With regard to climate change adaptation, we constantly assess how our products could contribute to climate change adaption and potentially qualify under the relevant EU Taxonomy criteria. For the year ended December 31, 2025, Capital expenditure related to the implementation of climate change adaptation solutions is not significant.

3.4.3.5.3. Taxonomy-eligible economic activities related to climate change mitigation

Our approach towards application of the EU Taxonomy Regulation for the relevant KPIs: turnover, capital expenditure and operating expenditure for EU Taxonomy reporting purposes is reflected below.

Turnover of Taxonomy-eligible economic activities

In our Taxonomy-eligibility assessment all our product lines have been reviewed. Products falling into one of the four product categories referenced above are considered Taxonomy-eligible and we have included the relevant turnover generated from those products in the Taxonomy turnover calculation.

This assessment resulted in a turnover of Taxonomy-eligible economic activities amounting to 44% of our total revenues reported for the financial year 2025, whereby the denominator is based on our total revenues as reported on the consolidated income statement for the year ended December 31, 2025, while the numerator is based on the total net turnover of our products considered as Taxonomy-eligible. This is increasing compared to 40% for the financial year 2024 due to the product mix of existing eligible products and newly eligible products.

Capital expenditure of Taxonomy-eligible economic activities

To determine the Taxonomy-eligible portion of our capital expenditure the following has been taken into account:

•investments in our technologies, which have been directly associated with Taxonomy-eligible product lines based on our capital expenditure plan for each technology;

•individual measures, such as investments for our carbon neutrality program or investments related to energy efficiency of our processes;

•investments related to IP or licenses or capitalized development costs, which have been classified as Taxonomy-eligible based on the relevant product line; and

•lease of buildings and equipment which have been considered as fully or partially Taxonomy-eligible.

For determining the Taxonomy-eligible portion of the capital expenditure, the denominator is determined based on the 2025 additions to property, plants and equipment (including rights of use for leased assets), intangible assets (including capitalized development costs), as reported in Notes 7.6.10, 7.6.11 and 7.6.12 of our consolidated financial statements for the year ended December 31, 2025.

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Furthermore, the numerator equals the part of the capital expenditure (including IFRS 16 leases) related to assets or processes that (i) are associated with Taxonomy-eligible economic activities, (ii) are part of a capital expenditure plan to expand Taxonomy-eligible economic activity, and (iii) are individual measures enabling economic activities to become low-carbon or to lead to GHG reduction.

This results in a capital expenditure of Taxonomy-eligible economic activities amounting to 49% of our total capital expenditure for the financial year 2025, constant with the ratio published for the financial year 2024 (49%).

Operating expenditure of Taxonomy-eligible economic activities

For determining the operating expenditure of Taxonomy-eligible economic activities, the denominator is determined based on R&D expenses, as reported in our consolidated income statement for the year ended December 31, 2025, after deducting depreciation and amortization, certain expenses and overheads, which are not directly associated with the development of new products or technologies.

Furthermore, the numerator equals to the part of the operating expenditure included in the denominator that is any of the following: (a) related to assets or processes associated with Taxonomy-eligible economic activities, (b) part of the capital expenditure plan to expand Taxonomy-eligible economic activities. For the numerator, we reviewed each R&D project with the following approach:

•each R&D project linked to a product line classified as Taxonomy-eligible resulted in Taxonomy-eligible operating expenditure; and

•for the remaining R&D projects serving multiple product lines or technologies, we applied relevant allocation keys taking into account, amongst others, the above mentioned Taxonomy-eligible portion of our turnover.

This assessment results in operating expenditure of Taxonomy-eligible economic activities amounting to 46% of our total operating expenditure for the financial year 2025, slightly lower than the ratio published for the financial year 2024 (48%). This decrease is primarily driven by R&D projects portfolio.

3.4.3.5.4. Taxonomy-aligned activities related to climate change mitigation

For financial year 2025, ST is not in a position of being compliant with substantial contribution criteria and is reporting consequently 0% in terms of alignment for the three KPIs.

As mentioned above, Taxonomy-alignment implies that the economic activities comply with the following three conditions:

•providing a substantial contribution to one of the six environmental objectives;

•complying with the DNSH criteria; and

•complying with the minimum safeguards criteria.

As we report within the 3.6 Manufacture of other low carbon technologies, ST must comply with the following principles of the Taxonomy technical screening criteria:

•the economic activity manufactures technologies that are aimed at and demonstrate substantial life cycle GHG emission savings compared to the best performing alternative technology/product/solution available on the market;

•life-cycle GHG emission savings are calculated using Commission Recommendation 2013/179/EU(100) or, alternatively, ISO 14067:2018(101) or ISO 14064-1:2018(102); and

•quantified life-cycle GHG emission savings are verified by an independent third-party.

While ST has managed to certify its LCA methodology in 2024 according to ISO 14067:2018 Annex C - CFP Systematic Approach for Design and Manufacturing of semiconductor products on our manufacturing

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sites, the other elements of compliance cannot be met. The certification is valid for 2024, 2025 and 2026, with surveillance audits in 2025 and 2026; the 2025 audit conclusion is consistent with the prior year’s conclusion. As the European Commission has still not published a dedicated semiconductor economic activity within the EU Taxonomy regulation and no additional guidance was provided on the economic activity 3.6, similar to last year, ST can not report on alignment.

ST will continue to monitor carefully any future developments, and we expect that our reporting will continue to evolve over time.

3.4.3.5.5. Future developments

There is still currently limited guidance published on the interpretation of various elements of the EU Taxonomy Regulation. While we have carefully balanced our assessment and disclosures on the EU Taxonomy Regulation, taking into account the latest publications, this reporting may still differ from future disclosures as more guidance becomes available over time.

In the coming years, we will continue to report under the EU Taxonomy Regulation regarding our Taxonomy-eligible and to the extent feasible our Taxonomy-aligned economic activities. This entails a further and continuous review of our products, do no significant harm procedures and minimum safeguards assessment. Recently released guidance on the EU Taxonomy Regulation could result in updated approach notably related to the DNSH pollution prevention and control criteria or the definition of the operating expenditure. We expect that our reporting will evolve over time as more insights will be gained on how best to comply with the EU Taxonomy Regulation.

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3.4.3.5.6. EU Taxonomy reporting tables

3.4.3.5.6.1. Proportion of turnover, CapEx, OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering year 2025 (summary KPIs)


Financial year 2025
KPI	Total	Proportion of Taxonomy-eligible activities		Taxonomy-aligned activities	Proportion of Taxonomy-aligned activities		Breakdown by environmental objectives of Taxonomy-aligned activities							Proportion of enabling activities		Proportion of transitional activities	Not assessed activities considered non-material	Taxonomy-aligned activities in previous financial year (N-1)	Proportion of Taxonomy-aligned activities in previous financial year (N-1)
							Climate Change Mitigation		Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity
	mUSD	%		mUSD	%		%		%	%	%	%	%	%		%	%	mUSD	%
Turnover	11,800	44	%	—	—	%	—	%	n.a	n.a	n.a	n.a	n.a	—	%	n.a	n.a	—	—	%
CapEx	2,120	49	%	—	—	%	—	%	n.a	n.a	n.a	n.a	n.a	—	%	n.a	n.a	—	—	%
OpEx	1,515	46	%	—	—	%	—	%	n.a	n.a	n.a	n.a	n.a	—	%	n.a	n.a	—	—	%

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3.4.3.5.6.2. Proportion of turnover, CapEx, OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering year 2025 (activity breakdown)

Turnover

Reported KPI - Turnover

Financial year 2025

Economic Activities

Code

Taxonomy-eligible KPI (Proportion of Taxonomy-eligible Turnover)

Taxonomy-aligned KPI (monetary value of Taxonomy-aligned Turnover)

Taxonomy-aligned KPI (Proportion of Taxonomy-aligned Turnover)

Environmental objective of Taxonomy-aligned activities

Enabling activity

Transitional activity

Proportion of Taxonomy-aligned in Taxonomy-eligible

Climate Change Mitigation

Climate Change Adaptation

Water

Circular Economy

Pollution

Biodiversity

mUSD

STMicroelectronics N.V. 6-K