STMicroelectronics N.V. (BIT:STM) was among the strongest performers on the Milan stock exchange today after signals of increased investment in the technology sector from the Chinese government boosted sentiment across Asian tech stocks.
Shares in the chipmaker climbed about 6% within the first hour of trading, second only to Davide Campari-Milano N.V., reaching €29.52 and returning to their highest level since late February.
The stock has now gained around 25% since the start of January 2026, bringing its performance over the past 12 months to roughly +28%.
Speaking at the opening of the annual “Two Sessions,” Chinese Premier Li Qiang announced a GDP growth target for the current year of between 4.5% and 5%, the lowest target set since 1991.
To support economic expansion amid weak domestic consumption and ongoing trade tensions, Beijing confirmed a budget deficit target of 4% and outlined a policy approach centred on high-technology sectors such as artificial intelligence and semiconductors, alongside strengthening defence capabilities.
Authorities also introduced measures within the 2026 Action Plan aimed at attracting higher-quality foreign investment and stabilising the property sector, while encouraging stronger collaboration between private capital and industrial innovation.
Although the growth target is the lowest in decades, markets appear to be responding positively to the clear policy support for the technology industry.
China represents about 15% of STMicroelectronics’ total revenue, and Beijing’s commitment to supporting consumption and digital infrastructure provides a positive signal for a semiconductor sector that struggled with oversupply during 2025.
The push toward electric vehicles and semiconductor development is particularly relevant for STM, which supplies components to manufacturers including Tesla Inc. and Geely Automobile Holdings. China’s accelerated adoption of new energy vehicles (NEVs) is expected to boost demand for silicon carbide (SiC), a technology segment in which the company aims to maintain global leadership.
Local partnerships also play a key role in the group’s strategy. Through its “in China for China” approach—including a joint venture with Sanan Optoelectronics for domestic production—STM can benefit from Chinese government incentives while reducing exposure to geopolitical tensions between the United States and China.
Separately, STMicroelectronics announced the launch of the STM32C5 family of entry-level microcontrollers, designed for billions of connected devices used in factories, homes, cities and infrastructure.
According to the company, the new chips are built using its proprietary 40nm process and are based on the Arm Cortex-M33 architecture, delivering stronger performance than existing entry-level devices. They include up to 1MB of Flash memory, enhanced security features such as SESIP3 and PSA Level 3 certification, protection against tampering and cyber threats, and integration with the STM32Cube development ecosystem.
The microcontrollers are suited for applications including smart thermostats, electronic locks, industrial sensors, robotic actuators and wearable devices. Production has already started, with prices beginning at $0.64 for orders of 10,000 units, and evaluation boards are currently available, the company said.
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