HOUSTON,
Jan. 2004—
STMicroelectronics
is a global independent semiconductor company and is a leader in
developing and delivering semiconductor solutions across the spectrum
of microelectronics applications. An unrivaled combination of silicon
and system expertise, manufacturing strength, Intellectual Property
(IP) portfolio
and strategic partners positions the Company at the forefront
of System-on-Chip (SoC) technology and its products play a key role
in enabling today's convergence trends.
Pasquale
Pistorio graduated in 1963 in Electrical Engineering from the Polytechnic
of Turin with a Master's Degree in Electronics. He began his career
in 1967 as a salesman for Motorola products in Italy , rising through
the ranks to become Director of International Marketing in 1977.
Based in Phoenix , Arizona , he was appointed Vice President of
Motorola Corporation and in 1978, he was promoted to General Manager
of Motorola's International Semiconductor Division, responsible
for design, manufacturing and marketing activities for all regions
outside of the United States .
In
July 1980 Pasquale Pistorio accepted the challenge to return to
Italy as President and Chief Executive Officer of the SGS Group,
the only Italian microelectronics company. His unwavering commitment
to build the company into a profitable broadline semiconductor manufacturer
led to one of Pasquale Pistorio's most significant achievements
to date: the successful integration of SGS with the French semiconductor
champion, Thomson Semiconducteurs, in May 1987. This was a powerful
merger, which put the newly formed company, SGS-THOMSON Microelectronics
(renamed STMicroelectronics in 1998), in a much better position
to compete on the international market.
So he became CEO and President of STmicroelectronics
Pasquale
Pistorio has a knack for coming out on top. But last year was a
majestic performance.
As chipmakers
from Silicon Valley to Tokyo endured the industry's worst year ever,
STMicroelectronics ( STM
) was one of only three of the top 10 semiconductor companies
to post a net profit, together with Intel ( INTC
) and Samsung. And although STMicro's revenues fell by 19.4%,
to $6.4 billion, that was far better than the 33% drop the industry
averaged. The Franco-Italian chipmaker also boosted its global market
share to 4.2%, rising from No. 6 to No. 3. Only Intel and Toshiba
( TOSBF )
are larger.
That's a great achievement for a company that once seemed doomed.
When Pistorio left Motorola Corp. in 1980 to take over a loss-plagued
state-owned SGS Group, Italy 's only microelectronics company, few
thought it could be salvaged. A merger in 1987 with the equally
moribund French chipmaker Thomson Semiconductors made the task more
challenging. But by 1994, Pistorio was churning out steady profits
and grooming STMicro for a listing on the New York Stock Exchange.
An industry veteran, the Sicilian-born Pistorio, 66, made his mark
by betting big on the chips needed for such digital products as
cell phones, networks, and cable-TV set-top boxes. "He looked into
the future and saw these applications would grow," says Andrew Norwood,
semiconductor analyst at Gartner Group in London .
His strategic partners include Nokia ( NOK
), Nortel Networks ( NT
), and Robert Bosch. But Pistorio isn't complacent. He sets
aside 10% of annual operating profit for research into futuristic
technologies with no immediate payoff. That's on top of the 15%
of total revenues he allots to regular research & development.
"Companies that work only for today will not have a tomorrow," he
says.
Pistorio's passion for his work is legendary. He often takes exhausted
managers on midnight tours. He once assigned all top executives,
including himself, to graveyard shifts to help convince union bosses
that plants must operate around-the-clock to stay competitive. Pistorio
plans to retire in 2005 to focus more on the environment, his other
passion. He has already put his ideas to work: Energy and water
conservation save STMicro $50 million a year.
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