ST Borrows To Pay For R&D

It seems to me that things have come to a pretty pass when you have to borrow to pay for your R&D budget. STMicroelectronics is borrowing $450m from the European Investment Bank to pay for R&D.

STMicroelectronics is borrowing $450m from the European Investment Bank to pay for its R&D.

The $450m loan, says ST, “supports ST’s activities in R&D and innovation related to the design and realisation of the next generation of technologies and electronic devices for applications in Power, MEMS, Microcontrollers, Advanced Analog and Healthcare. This includes the full cycle from technology R&D and product development to application solutions that include software development and systems integration.”

The loan is due to be repaid in 2022.

ST says it has repaid bond debt of $450m. ST says it expects to incur costs of $350-450m relating to closing down its

jv ST

-Ericsson. ST has credit lines worth $490m.

At the end of last year, ST said it had ‘net cash’ of $1.19bn.

Tags: stmicroelectronics

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3 Comments

  1. Mike Bryant
    March 31, 2013 21:24

    We’ll have to see their latest results.

  2. Jack
    March 31, 2013 13:28

    So Mike, what do you think the net cash ST has on hand?

  3. Mike Bryant
    March 26, 2013 15:06

    And they get several hundred million Euros in a special French R&D tax credit. If you recall we discussed that ‘net cash’ last year and it was all fantasy money even then. I wonder how long it will take them to burn through this loan ?

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