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USD ($)

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    &lt;!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --&gt;
    &lt;!-- Begin Block Tagged Note 26 - stm:LegalMattersAndContingenciesTextBlock--&gt;
    &lt;div style="margin-left: 0%"&gt;
    &lt;div style="margin-top: 12pt; font-size: 1pt"&gt;&amp;#160;
    &lt;/div&gt;
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    &lt;td&gt;
    &lt;b&gt;&lt;font style="font-family: 'Times New Roman', Times"&gt;26.&amp;#160;&amp;#160;&lt;/font&gt;&lt;/b&gt;
    &lt;/td&gt;
    &lt;td&gt;
    &lt;b&gt;&lt;font style="font-family: 'Times New Roman', Times"&gt;CLAIMS
    AND LEGAL PROCEEDINGS&lt;/font&gt;&lt;/b&gt;
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    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
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    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    The Company has received and may in the future receive
    communications alleging possible infringements, in particular in
    the case of patents and similar intellectual property rights of
    others. Furthermore, the Company periodically conducts broad
    patent cross license discussions with other industry
    participants which may or not be successfully concluded. The
    Company may become involved in costly litigation brought against
    the Company regarding patents, mask works, copy-rights,
    trade-marks or trade secrets. In the event that the outcome of
    any litigation would be unfavorable to the Company, the Company
    may be required to license patents
    &lt;font style="white-space: nowrap"&gt;and/or&lt;/font&gt; other
    intellectual property rights at economically unfavorable terms
    and conditions, and possibly pay damages for prior use
    &lt;font style="white-space: nowrap"&gt;and/or&lt;/font&gt; face
    an injunction, all of which individually or in the aggregate
    could have a material adverse effect on the Company&amp;#8217;s
    results of operations, cash flows, financial position
    &lt;font style="white-space: nowrap"&gt;and/or&lt;/font&gt;
    ability to compete.
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    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
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    The Company is otherwise also involved in various lawsuits,
    claims, investigations and proceedings incidental to its
    business and operations.
    &lt;/div&gt;
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    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
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    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    On April&amp;#160;17, 2007, Tessera Technologies, Inc. filed a
    complaint against STMicroelectronics NV, Freescale Inc., ATI
    Technologies, Inc., Motorola, Inc., Qualcomm, Inc., Spansion,
    Inc., Spansion LLC, in the International Trade Commission (ITC)
    requesting the ITC to enter an injunction barring the
    importation of any product containing a device that infringes
    two identified patents related to ball grid array (BGA)
    packaging technology. On December&amp;#160;1, 2008, the
    administrative law judge issued his initial determination
    finding in favor of the respondents and recommended that no
    injunction barring importation of the respondents&amp;#8217; products
    be entered. In accordance with their rights, Tessera petitioned
    the ITC to review the administrative law judge&amp;#8217;s initial
    determination on December 15, 2008. On May&amp;#160;20, 2009 the ITC
    issued a final order finding that all the respondents infringe
    on Tessera&amp;#8217;s asserted patents, and granted Tessera&amp;#8217;s
    request for a Limited Exclusion Order prohibiting the
    importation of respondents&amp;#8217; infringing products. On
    December&amp;#160;21, 2010, the Federal Circuit Court of Appeals,
    issued an opinion upholding the ITC&amp;#8217;s final order.
    Respondents have requested that the Federal Circuit re-hear the
    appeal before the entire panel of justices. In September 2010,
    the asserted patents expired, thus nullifying the Limited
    Exclusion Order. The filing of the ITC proceedings on
    April&amp;#160;17, 2007 resulted in the stay of an earlier lawsuit
    filed by Tessera in January 2006 against STMicroelectronics and
    STMicroelectronics Inc along with Spansion Inc and Spansion LLC
    in the US District court for the Northern District of
    California, pursuant to which Tessera was claiming an injunction
    as well as an unspecified amount of monetary damages for breach
    of a 1997 License Agreement by STMicroelectronics Inc. The
    Company expects that once the appellate process concerning the
    ITC ruling is completed, Tessera will seek to lift the stay on
    the pending proceedings in the Federal Court for the Northern
    District of California. The asserted Tessera patents have all
    now expired. The Company continues to assess the merits of all
    ongoing litigation with Tessera.
    &lt;/div&gt;
    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
    &lt;/div&gt;
    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    On December&amp;#160;1, 2010, Rambus, Inc. filed a complaint in the
    ITC against STMicroelectronics NV, STMicroelectronics Inc.,
    along with other semiconductor respondents: Broadcom
    Corporation, Freescale Inc., LSI Corporation, Nvidia
    Corporation, and Mediatek Inc. and 22 customer respondents,
    alleging, among other things, that certain semiconductor parts
    and customer products incorporating such semiconductor parts,
    infringe patents owned by Rambus relating to standard
    technologies in the field of double data rate memory controller
    and peripheral interfaces. The ITC complaint seeks an exclusion
    order barring the importation of accused products into the
    United States. On December&amp;#160;29, 2010 the ITC voted to
    institute an investigation based on Rambus&amp;#8217; complaint and
    on February&amp;#160;15,&amp;#160;2011 the Administrative Law Judge at
    the ITC issued a procedural order pursuant to which a hearing is
    currently scheduled to be held in October 2011, an Initial
    Determination to be rendered no later than January&amp;#160;4, 2012,
    with a final determination expected for May 2012. Also on
    December&amp;#160;1, 2010, Rambus filed related lawsuits in the
    Northern District of California against STMicroelectronics NV,
    STMicroelectronics Inc. and certain other semiconductor
    respondents alleging, among other things, that certain of
    semiconductor products infringe on 19 Rambus patents including
    the same patents involved in the ITC matter as well as other
    patents owned by Rambus in relation to memory controller and
    high speed interface technologies. Rambus seeks unspecified
    monetary damages, enhanced damages, and injunctive relief.
    Respondents have requested that the proceedings in US District
    Court be stayed pending the outcome of the ITC proceedings. The
    Company continues to assess the merits of the ITC complaint and
    the Northern District of California lawsuit.
    &lt;/div&gt;
    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
    &lt;/div&gt;
    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    On December&amp;#160;4, 2009 the Company received from the
    International Chamber of Commerce the notification of a request
    for arbitration filed by NXP Semiconductors Netherlands BV
    &amp;#8220;NXP&amp;#8221; against STMicroelectronics NV, and ST-Ericsson,
    claiming compensation for so called underloading costs, pursuant
    to a Manufacturing Services Agreement entered into between NXP
    and ST-NXP Wireless, at the time of the creation of ST-NXP
    Wireless, the Company&amp;#8217;s wireless semiconductor products
    joint venture with NXP, in August 2008. The claim is currently
    evaluated by NXP at approximately $59&amp;#160;million. In January
    2009, NXP agreed upon our request to withdraw its claim against
    ST-Ericsson. The Company is contesting the NXP claim vigorously.
    An arbitration hearing is currently planned to occur in Paris as
    from May&amp;#160;23, 2011.
    &lt;/div&gt;
    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
    &lt;/div&gt;
    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    The Company is also the beneficiary of a Finra arbitration award
    of US$406&amp;#160;million rendered in February 2005 in the
    Company&amp;#8217;s dispute against Credit Suisse Securities. Such
    award was confirmed in March and August 2010 by the US District
    Court for the Southern District of New York. The decision of the
    New York District Court is at the request of Credit Suisse which
    has posted a bond, currently under appeal before the Court of
    Appeal for the Second Circuit.
    &lt;/div&gt;
    &lt;div style="margin-top: 6pt; font-size: 1pt"&gt;&amp;#160;
    &lt;/div&gt;
    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    The pending proceedings which the Company faces involve complex
    questions of fact and law. The results of legal proceedings are
    uncertain and material adverse outcomes are possible.
    &lt;/div&gt;
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    &lt;div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"&gt;
    The Company accrues loss contingencies when a loss is probable
    and can be estimated. The Company regularly evaluates claims and
    legal proceedings together with their related probable losses to
    determine whether they need to be adjusted based on the current
    information available to the Company. Legal costs associated
    with claims are expensed as incurred. In the event of litigation
    which is adversely determined with respect to the Company&amp;#8217;s
    interests, or in the event the Company needs to change its
    evaluation of a potential third-party claim, based on new
    evidence or communications, a material adverse effect could
    impact its operations or financial condition at the time it were
    to materialize. As of December&amp;#160;31, 2010 provisions were
    recorded by the Company with respect to legal proceedings when
    the Company considered both that it was probable that a
    liability had been incurred and the associated amount could be
    reasonably estimated. The amount of such reserves is not
    considered material. Additionally, at
    this time, the Company does not believe that the reasonably possible loss contingencies in aggregate, as
    they can be reasonably estimated, is a material amount to the
    financial statements as a whole, including results of
    operations, cash flows and financial position.
    &lt;/div&gt;
    &lt;/div&gt;
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