Jostling for position in Chinese semi industry

STMicroelectronics, a European semiconductor manufacturer, has reinforced its intention to strengthen its presence China.

According to the most recent iSuppli reports, ST is currently the number 3 semiconductor supplier to the China market and plans to further increase its influence in the world's fastest growing economic zone.

ST's partners for joint future growth are slated to include the region's top electronics companies, which are increasing their market share in a wide variety of different applications such as telecommunications, digital consumer, industrial, automotive, and smartcards.

"Today, we are the number 3 semiconductor supplier in China and the number 2 if we exclude microprocessor products. We plan to become the number 1, reinforcing our position as a leading player in this market," said Bob Krysiak, corporate vice president and general manager for Greater China. "Because it is in our DNA, we will continue to work closely with our existing partner and alliance network while establishing new partnerships and alliances with major emerging players, many of which will come from China and Asia."

The booming segment of Electronic Manufacturing Services (EMS) is another focal point of ST's market strategy in China. With the business model shifting towards outsourcing to original design manufacturers (ODM) and sub-contracting services, the world's major EMS and ODM players, who are largely based in the Greater China region, will outpace the market and dictate the choice of semiconductor devices.

The company's greater china headquarters have been set up in Shanghai and, as a sign of further commitment to the country a new building is currently under construction, with a total investment of US$ 10 million once it is completed.