STMicroelectronics N : 2021 Semi Annual Report (IFRS)

Contents
1.CORPORATE OVERVIEW..................................................................................................................................................	3
1.1.	History and development of STMicroelectronics........................................................................................................	3
1.2.	Strategy and objectives................................................................................................................................................	3
1.3.	Organizational structure...............................................................................................................................................	4
1.4.	Products and activities.................................................................................................................................................	4
1.5.	Sales, Marketing and Distribution...............................................................................................................................	5
1.6.	Research & Development............................................................................................................................................	5
1.7.	Sustainability................................................................................................................................................................	5
2. REPORT OF THE MANAGING BOARD...............................................................................................................................	7
2.1.	Business overview.......................................................................................................................................................	7
2.2.	Segment information....................................................................................................................................................	8
2.3.	Liquidity and financial position...................................................................................................................................	8
2.4.	Business and financial outlook....................................................................................................................................	12
2.5.	Other developments.....................................................................................................................................................	13
2.6.	Related party transactions............................................................................................................................................	14
2.7.	Financial Risk Management........................................................................................................................................	14
2.8.	Business risk information............................................................................................................................................	15
2.9.	Auditor's involvement.................................................................................................................................................	16

3. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ("SEMI ANNUAL

FINANCIAL STATEMENTS").................................................................................................................................................	17
3.1.	Consolidated income statement...................................................................................................................................	17
3.2.	Consolidated statement of comprehensive income......................................................................................................	18
3.3.	Consolidated statement of financial position...............................................................................................................	19
3.4.	Consolidated statement of changes in equity...............................................................................................................	20
3.5.	Consolidated statement of cash flows..........................................................................................................................	22
3.6.	Notes to the consolidated financial statements............................................................................................................	23
	3.6.1.	Corporate information................................................................................................................................	23
	3.6.2.	Basis of preparation....................................................................................................................................	24
	3.6.3.	Significant accounting policies...................................................................................................................	24
	3.6.4.	Critical accounting estimates and judgements...........................................................................................	25
	3.6.5.	Revenues......................................................................................................................................................	26
	3.6.6.	Segment information...................................................................................................................................	27
	3.6.7.	Property, plant and equipment and intangible assets.................................................................................	29
	3.6.8.	Business acquisitions..................................................................................................................................	29
	3.6.9.	Goodwill......................................................................................................................................................	30
	3.6.10.	Other financial assets and financial liabilities...........................................................................................	31
	3.6.11.	Leases..........................................................................................................................................................	42
	3.6.12.	Inventories...................................................................................................................................................	43
	3.6.13.	Cash and cash equivalents..........................................................................................................................	43
	3.6.14.	Equity..........................................................................................................................................................	43
	3.6.15.	Provisions....................................................................................................................................................	45
	3.6.16.	Expenses by nature......................................................................................................................................	46
	3.6.17.	Other income / expenses..............................................................................................................................	46
	3.6.18	Finance income / costs................................................................................................................................	48
	3.6.19.	Earnings per share......................................................................................................................................	49
	3.6.20.	Related-partytransactions..........................................................................................................................	49
	3.6.21.	Contingencies, claims and legal proceedings.............................................................................................	49
4. SOLE MEMBER OF THE MANAGING BOARD'S STATEMENT...............................................................................	51
5. ABOUT STMICROELECTRONICS...................................................................................................................................	52

STMicroelectronics  Semi Annual Report 2021

Contents 2

1. Corporate overview

1.1. History and development of STMicroelectronics

STMicroelectronics N.V. ("ST" or "the Company") was formed and incorporated in 1987 as a result of the combination of the semiconductor business of SGS Microelettronica (then owned by Società Finanziaria Telefonica (S.T.E.T.), an Italian corporation) and the non-military business of Thomson Semiconducteurs (then owned by the former Thomson-CSF, now Thales, a French corporation). We completed our initial public offering in December 1994 with simultaneous listings on the Bourse de Paris (now known as "Euronext Paris") and the New York Stock Exchange ("NYSE"). In 1998, we also listed our shares on the Borsa Italiana S.p.A. ("Borsa Italiana").

We operated as SGS-Thomson Microelectronics N.V. until May 1998, when we changed our name to STMicroelectronics N.V. We are organized under the laws of The Netherlands, with our corporate legal seat in Amsterdam, The Netherlands, and our head offices at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol, The Netherlands. Our telephone number there is [phone]. Our headquarters and operational offices are managed through our wholly owned subsidiary, STMicroelectronics International N.V., and are located at 39 Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland. Our main telephone number there is [phone]. Our agent for service of process in the United States related to our registration under the U.S. Securities Exchange Act of 1934, as amended, is Corporation Service Company, 80 State Street, Albany, New York, 12207. Our operations are also conducted through our various subsidiaries, which are organized and operated according to the laws of their country of incorporation, and consolidated by the Company.

1.2. Strategy and objectives

At ST, we are 46,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An independent device manufacturer, we work with more than 100,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. We develop industry-leading technologies that allow us to provide products and solutions that meet and exceed the needs and expectations of our customers now and into the future.

Our strategy focuses on long-term value creation for the Company and its subsidiaries and takes into account the short-, medium- and longer-term evolution of the markets we serve and the environment and opportunities we see. It stems from key long-term enablers: Smart Mobility, where we provide innovative solutions to help our customers make driving safer, greener and more connected for everyone; Power & Energy: our technology and solutions enable customers to increase energy efficiency everywhere and support the use of renewable energy sources; Internet of Things ("IoT") & 5G: we provide sensors, embedded processing solutions, connectivity, security, optical sensing and power management, as well as tools and ecosystems to make development fast and easy for our customers.

We are focused on application areas which are expected to experience solid growth rates driven by broad, long-term trends in electronic systems. These trends require enablers such as autonomous systems, robotics, securely connected machines and personal devices, digitalization and electrification of automobiles and infrastructure, advanced communications equipment and networks and more power efficient systems. These enablers drive in turn the demand for the electronic components we develop and manufacture.

Our products are used in a wide variety of applications for the four end-markets we address: automotive, industrial, personal electronics and communications equipment, computers and peripherals. For the automotive and industrial markets we address a wide customer base, particularly in industrial, with a broad and deep product portfolio. In personal electronics and communications equipment, computers and peripherals we have a selective approach both in terms of the customers we serve, as well as in the technologies and products we offer.

STMicroelectronics  Semi Annual Report 2021

Corporate Overview 3

1.3. Organizational structure

We are organized in a matrix structure with geographic regions interacting with product lines, both supported by shared technology and manufacturing operations and by central functions, designed to enable us to be closer to our customers and to facilitate communication among the R&D, production, marketing and sales organizations.

While STMicroelectronics N.V. is our parent company, we conduct our global business through STMicroelectronics International N.V. and also conduct our operations through service activities from our subsidiaries. We provide certain administrative, human resources, legal, treasury, strategy, manufacturing, marketing and other overhead services to our consolidated subsidiaries pursuant to service agreements for which we recover the cost.

1.4. Products and activities

We are a global independent semiconductor company that designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits ("ASICs"), full- custom devices and semi-custom devices and application-specific standard products ("ASSPs") for analog, digital and mixed-signal applications.

Our diverse product portfolio benefits from a unique, strong foundation of proprietary and differentiated leading-edge technologies. We use all of the prevalent function-oriented process technologies, including complementary metal-on silicon oxide semiconductors ("CMOS"), bipolar and non-volatile memory technologies. In addition, by combining basic processes, we have developed advanced systems-oriented technologies that enable us to produce differentiated and application-specific products, including our pioneering fully depleted silicon-on-insulator("FD-SOI") technology offering superior performance and power efficiency compared to bulk CMOS, Bipolar CMOS technologies ("Bi-CMOS") and radio frequency silicon-on-insulator("RF-SOI") for mixed-signal and high-frequency applications, as well as a combination of Bipolar, CMOS and DMOS ("BCD") and vertically integrated power ("VIPower") technologies for smart power applications, silicon carbide ("SiC") and gallium nitride ("GaN") for high-efficiency systems, micro-electro-mechanical systems ("MEMS") technologies for sensors and actuators, embedded memory technologies for our microcontrollers and differentiated optical sensing technologies for our optical sensing solutions.

Our operating segments are as follows:

• Automotive and Discrete Group (ADG), comprised of dedicated automotive integrated circuits ("ICs"), and discrete and power transistor products.
• Analog, MEMS and Sensors Group (AMS), comprised of analog, smart power, low power RF, MEMS sensors and actuators, and optical sensing solutions.
• Microcontrollers and Digital ICs Group (MDG), comprised of microcontrollers (general purpose and secure), memories (RF and EEPROM), and RF communications.

For the computation of the segments' internal financial measurements, we use certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, selling, general and administrative ("SG&A") expenses and a part of research and development ("R&D") expenses. In compliance with our internal policies, certain costs are not allocated to the segments, but reported in "Others". Those comprise unused capacity charges, including reduced manufacturing activity due to COVID-19, impairment, restructuring charges and other related closure costs, management reorganization expenses, phase-out and start-up costs of certain manufacturing facilities, and other unallocated expenses such as: strategic or special R&D programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of other products. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in cost of sales. Finally, public grants are allocated to our segments proportionally to the incurred R&D expenses on the sponsored projects.

STMicroelectronics  Semi Annual Report 2021

Corporate Overview 4

1.5. Sales, Marketing and Distribution

Our sales and marketing is organized by a combination of country/area coverage and key accounts coverage with the primary objective of accelerating sales growth and gaining market share, particularly with regards to: strengthening the effectiveness of the development of our global and major local accounts; boosting demand creation through an enhanced focus on geographical coverage with strong technical expertise, supported in the mass market by our distribution channel and local initiatives; and establishing regional sales and marketing teams that are fully aligned with our strategic end- markets: automotive, industrial, personal electronics and communications equipment, computers and peripherals.

We have three regional sales organizations reporting to a global head of Sales & Marketing: Americas; Asia Pacific; and Europe, Middle East, Africa ("EMEA"). Our regional sales organizations have a similar structure to enhance coordination in global strategy alignment and go-to-market activities. The sales and marketing teams are strongly focused on profitable revenue growth and business performance as well as on fostering demand, expanding the customer base, maximizing market share, developing new product-roadmaps and providing the best technical and application support in the field for our customers. The sales and marketing activities are supported by sales engineers, system marketing, product marketing, application labs, field application engineers and quality engineers.

1.6. Research & Development

Since our formation, we have maintained a solid commitment to innovation. About one-fifth of our employees work in R&D on product design/development and technology. Our innovations in semiconductor technology as well as in hardware and software contribute to the creation of successful products that generate value for us and our customers. Our complete design platforms, including a large selection of intellectual property ("IP") and silicon-proven models and design rules, enable the fast development of products designed to meet customer expectations in terms of reliability, quality, competitiveness in price and time-to-market. Through our R&D efforts, we contribute to making our customers' products more efficient, more appealing, more reliable and safer. Our technology R&D strategy is based on the development of differentiated technologies, allowing for a unique offer in terms of new products and enabling new applications opportunities.

We draw on a rich pool of chip fabrication technologies, including advanced CMOS, FD-SOI,RF-SOI, optical sensing, embedded non-volatile memories, mixed-signal, analog, MEMS, smart power, SiC and GaN processes. This is well embedded in our strong packaging technologies portfolio such as high pin count ball grid array ("BGA") packages, wafer level packaging, highly integrated sensor packages and leadframe package power products. We combine both front-end and back-end manufacturing and technology R&D under the same organization to ensure a smooth flow of information between our R&D and manufacturing organizations. We leverage significant synergies and shared activities between our product groups to cross-fertilize them. We also use silicon foundries, especially for advanced CMOS beyond the 28nm node.

We have advanced R&D centers which offer us a significant advantage in quickly and cost-effectively introducing products. Furthermore, we have established a strong culture of partnerships and through the years have created a network of strategic collaborations with key customers, suppliers, competitors, and leading universities and research institutes around the world. We also play leadership roles in numerous projects running under the European Union's Information Society Technologies programs. We also participate in certain R&D programs established by the European Union, individual countries and local authorities in Europe (primarily in France and Italy).

1.7. Sustainability

Sustainability has been a guiding principle for ST for more than 25 years. In line with our vision to be everywhere microelectronics make a positive contribution to people's lives, sustainability is deeply embedded in all of our activities. We believe that sustainability is fundamental to our business, brings new opportunities, improves efficiency, reduces risks and secures long-term profitability. It also brings benefits to our employees and our external stakeholders. Our approach to sustainability is expressed in our Code of Conduct, our policies and in our sustainability strategy.

At the heart of our sustainability strategy is an unceasing focus on what really matters for us and our stakeholders. We identify the most material topics for our stakeholders and their impacts on our business by carrying out an extensive materiality exercise every three years. For each material topic identified, we define a specific ambition and long-term goal.

STMicroelectronics  Semi Annual Report 2021

Corporate Overview 5