STMicroelectronics Partners with ENGIE for Renewable Energy Commitment in Malaysia

Global semiconductor giant STMicroelectronics (NYSE: STM) has made public its 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a collective venture between worldwide low-carbon energy leader ENGIE Renewable SEA Pte Ltd (ENGIE), and rapidly emerging Malaysian solar energy developer, Conextone Energy Sdn Bhd. This strategic partnership will enable STMicroelectronics to receive roughly 50 GWh of green energy annually from a freshly-constructed solar farm in Bukit Kayu Hitam, Kedah, Malaysia. Such a collaboration has been set up as part of the Corporate Green Power Program, launched by the Malaysian Single Buyer in 2023.

Carbon Neutrality: A Priority for STMicroelectronics

STMicroelectronics' EVP and Chief Procurement Officer, Geoff West, stated, "The groundbreaking agreement in Malaysia serves as ST's initial effort in Asia to secure a long-term power purchasing commitment, which is fundamental to our objective of reaching carbon neutrality in our operations by 2027. Our ambition to shift to 100% renewable energy sourcing by this timeframe is heavily reliant on strategic partnerships such as this. Starting in 2025, our collaboration with ENGIE will provide us with an impressive volume of renewable energy, specifically for our substantial test and assembly operations in Muar, Johor, Malaysia.”

ENGIE Supporting STMicroelectronics' Sustainable Mission

Amit Jain, ENGIE’s Managing Director for India & Southeast Asia, expressed gratification at the partnership with STMicroelectronics, saying, “ENGIE is thrilled to pair up with STMicroelectronics in the global progression towards sustainable energy solutions. We are proudly contributing to ST's transformative journey towards 100% renewable sourcing by supplying approximately 50 GWh of renewable energy annually from our new 30 MW solar PV project in Malaysia. This union clearly signifies our pledge to deliver green, clean, and reliable energy to our customers.”

STMicroelectronics' Muar, Johor facility, which prides itself on over 4,700 employees, supports various technologies and products, including high reliability applications for automotive clients. The semiconductor leader also has operational support centers based in Penang and Kuala Lumpur.