STMicroelectronics, a Geneva-based chipmaker, has entered into a 21-year power purchase agreement (PPA) with BKH Solar Sdn Bhd, a joint venture between French utility Engie SA and Malaysian solar developer Conextone Energy Sdn Bhd.
The agreement will see STMicroelectronics source about 50 GWh annually from a new 30-MW solar farm in Bukit Kayu Hitam, Kedah, Malaysia.
This marks STMicroelectronics' first long-term PPA in Asia, supporting its goal to achieve carbon neutrality by 2027, including sourcing 100% renewable energy by that year.
The solar power will be supplied to the company's high-volume test and assembly site in Muar, Johor, starting in 2025.
The PPA is part of Malaysia's Corporate Green Power Programme, launched in 2023 to encourage the use of renewable energy by businesses.
