STMicroelectronics N.V. (STM) is declining in the current market today after making two announcements in a press release. STM values at $37.42, declining more than 7.28% compared to yesterday’s closing price. The stock closed at $40.36 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.41 million shares. The current market cap of the company is about $36.60 billion.
STM: Loan from EIB
STMicroelectronics N.V. (STM) announced two press releases on March 2, 2022, that STMicroelectronics has received a €600 million loan from the European Investment Bank (EIB) to boost its research and development (R&D) and pre-industrialization efforts in Europe.
Research and development (R&D) and the development of new, cutting-edge technology will benefit from this loan. A primary objective of the European Union and its member states is to promote the European semiconductor sector. This financing will help the European semiconductor industry maintain its technological independence.
In a second press release, the company also announced that it was designated one of the Top 100 Global Innovators for 2022. The yearly list from Clarivate Analytics, which recognizes ST’s position among the world’s most innovative firms, serves as a benchmark for driving global innovation by evaluating excellence in innovativeness on an unprecedented scale and with extraordinary consistency over time.
STM CEO’s Remarks
STMicroelectronics President and CEO Jean-Marc Chéry said the new loan from the EIB, with whom STMicroelectronics has a long-standing collaboration, complements existing industry assistance instruments. For example, the European Commission and the Member States are now establishing IPCEIs. Collaboration with the diverse European ecosystems is critical. ST will continue developing and manufacturing groundbreaking technologies and products in Europe. It will help all industries migrate to a digital economy and achieve 20% global manufacturing in Europe by 2030.
Conclusion
The stock is declining after being given a loan of €600 million. This will have a massive impact on the company’s balance sheet. If the company manned to create a completive edge in its technology with the help of this money, then it will have far better results.
