The stage of artificial intelligence (AI) is expanding beyond the cloud to real devices such as robots, factories, home appliances, and cars. In cloud AI, shortages of compute and memory along with power supply issues have emerged as bottlenecks, and physical AI faces the challenge of implementing AI functions with low power. ST is focusing its capabilities on resolving power bottlenecks in AI data centers, and in physical AI, we are combining sensors, microcontrollers (MCUs), and power semiconductors to enhance devices' perception, inference, and control functions.
Hiroshi Noguchi, executive vice president of sales and marketing for APeC (Asia-Pacific excluding China), who visited Korea on the 15th to attend STMicroelectronics' (ST) annual tech conference (K-TEC 2026), said this in an interview with ChosunBiz.
He saw the AI Semiconductor market advancing around solving power and energy issues, Edge AI (technology that executes AI functions directly on devices where data is generated), and smart mobility. Executive Vice President Hiroshi Noguchi said, "With the spread of Generative AI driving a surge in data center power demand, efficient and scalable power delivery has become a necessity, not a choice," and "There is also a stronger trend to process information closer to devices rather than only in AI data centers, and as cars become electrified and digitalized, the amount and role of semiconductors in each vehicle are increasing."
ST is an integrated device manufacturer (IDM) that supplies products to a wide range of electronic applications, including automotive, industrial equipment, data centers, and home appliances. It has a broad portfolio in power semiconductors, MCUs, sensors, optics, and radio frequency (RF) technologies, supplying products and solutions to more than 200,000 customers worldwide. Last year's revenue was $11.8 billion (about 17.7 trillion won), and operating profit was $175 million (about 260 billion won). It is regarded as a corporations that is active in technology development, reinvesting 14.5% of total revenue into research and development (R&D).
◇ AI data centers, solving power bottlenecks is a growth axis
Executive Vice President Hiroshi Noguchi viewed changes in the AI Semiconductor market as ultimately tied to the question of how efficiently electricity is used to deliver performance. He said, "Although electric vehicles, robots, and data centers are different markets, the integration of AI presents a common challenge of processing data efficiently with less power."
With the spread of Generative AI, data center infrastructure investment is focused on graphics processing units (GPUs) and high bandwidth memory (HBM). The more computation GPUs and HBM handle, the more data center operators are emphasizing the need to establish structures that supply stable power to these semiconductors. He explained, "AI, which requires massive power, is difficult to support with existing data center power architectures alone," and "Ultimately, the process of delivering electricity to data centers must be fundamentally changed."
High-voltage alternating current (AC) that enters data centers steps down multiple times and is converted to direct current (DC) as it passes through buildings, racks, and inside servers. At the end, it must be converted down to the low voltages around 1V used by GPUs. The more stages of power conversion there are, the greater the losses and heat, and the greater the space burden for placing power supplies and wiring.
ST believes that switching data center power delivery to an 800V DC-based approach can resolve much of this problem. In the traditional architecture, power is converted multiple times before being delivered into the server, but in an 800V DC architecture, higher-voltage DC power is brought closer to the server rack and then stepped down to the voltage used by GPUs. ST's approach is to reduce conversion stages to cut losses and heat, and to relieve the burden of power supplies and wiring inside the rack.
ST has built a power conversion portfolio that goes from 800V DC to 50V, 12V, 6V, and down to the GPU power stage. This portfolio was developed to match Nvidia's 800V DC design. ST has also entered into a multiyear strategic collaboration worth several billion dollars with Amazon Web Services (AWS) in high-performance computing infrastructure for cloud and AI data centers.
Executive Vice President Hiroshi Noguchi cited silicon carbide (SiC), gallium nitride (GaN), and digital power as the technological strengths that enabled ST to build this portfolio. He said, "SiC-based solutions reduce power consumption, and GaN-based solutions help reduce the area of the power stage." SiC is used to efficiently step down high voltages such as 800V DC, and GaN makes power supplies smaller and faster so they can be placed closer to GPUs. Digital power precisely controls the conversion process to reduce waste as electricity passes through multiple stages.
He said, "Solutions to improve power efficiency in AI data centers will become a new growth axis," and "We will not stop at merely supplying power semiconductor components, but will deliver solutions required across the entire 800V DC power architecture to achieve results." ST has projected that data center-related revenue will far exceed $500 million (about 750 billion won) this year and could surpass $1 billion in 2027.
◇ "Responding to the physical AI market with a broad product set"
Executive Vice President Hiroshi Noguchi said that along with targeting the AI data center market centered on power semiconductors, ST is also accelerating expansion into physical AI-related businesses. He said, "The next wave of AI is not all in the cloud," and "ST is already mass-producing silicon for Edge AI."
ST's physical AI strategy focuses on supplying, in one package, the semiconductors needed for devices to see, decide, and move in the field. He explained, "When people say physical AI, they first think of Humanoid Robot, but the actual market is much broader, including factory automation, collaborative and service robots, as well as arm, hand, and vision modules."
To expand its physical AI business, ST recently released a new MCU (STM32N6). It also introduced micro-electro-mechanical systems (MEMS) sensors with AI functions, and time-of-flight (ToF) and vision sensors. The STM32N6 is equipped with an in-house developed Neural Processing Unit (NPU) from ST, delivering up to 600 GOPS (60 billion operations per second). MEMS sensors detect device motion, and ToF and vision sensors perceive distance and space. Noguchi said, "By combining these products, we are helping customers' robots and industrial equipment perceive their surroundings, make decisions, and control actions."
He received a bachelor's degree in electrical engineering from Northwestern University and a master's degree in electrical engineering from Stanford University. After serving as head of ST's Japan office, he has overseen sales and marketing for the APeC region since 2022. The following is a Q&A.
- In February, you acquired NXP's MEMS sensor business.
"With the acquisition of NXP's MEMS sensor business, ST's automotive portfolio has expanded significantly. Because Korea has a strong automotive industry and automakers, we believe we can deliver more value to customers in Korea.
This acquisition is not merely about adding NXP's MEMS products to ST. By combining them with ST's existing portfolio of MCUs, sensors, actuators, and automotive semiconductors, we can approach customers from a broader system perspective. It is difficult to mention specific ongoing projects, but our sales and marketing organization in Korea is in close discussions with customers based on the new products."
- Tariff and the Middle East war have heightened the importance of semiconductor supply chain issues.
"ST owns and operates its own fabs for silicon manufacturing. Because we have manufacturing bases in multiple regions, we can respond to customer demand worldwide. Supply chain and logistics challenges are not unique to the semiconductor industry, but are critical issues every industry around the world must address. ST also operates a logistics team and takes various measures to ensure customers receive products without disruption."