Chip Makers Turn to Convertible Bonds to Avoid Expensive Debt

STMicroelectronics raised $1.5 billion via convertible bonds in June 2026—joining other semiconductor firms. High interest rates make regular debt costly; volatile stock prices make the conversion option attractive to investors. The math now favors convertibles over straight debt or equity. For chip makers facing cyclical downturns, this shift is reshaping how the sector raises capital.