Why Chip Makers Are Flooding the Convertible Bond Market

STMicroelectronics raised $1.5 billion via convertible bonds on June 16, 2026—one of many semiconductor plays tapping this hybrid structure. High interest rates have made straight debt expensive; elevated equity volatility makes the conversion option valuable to investors. The result: convertibles now beat both traditional debt and equity offerings. For semiconductors navigating cyclical weakness, this economics shift is reshaping capital markets in the sector.