Chinese, European firms step up
semiconductor cooperation: Report
- STMicroelectronics and Hua Hong Semiconductor will produce 40-nanometer microcontroller chips in Shenzhen by 2025
- STMicroelectronics values China’s market for its size, innovation, and reliable supply chains, especially in EVs
- Manufacturing in China is cost-effective and supports faster EV development cycles
- China’s complete supply chain, strong market demand, and government support attract global semiconductor companies
- China recently removed foreign investment restrictions in manufacturing, boosting its appeal to global businesses
STMicroelectronics, a European chipmaker, is teaming up with Hua Hong Semiconductor, China’s second-largest custom chipmaker, to produce microcontroller chips in Shenzhen by the end of 2025. This partnership shows how global companies see China as a great business opportunity because of its huge market and reliable supply chains.
STMicroelectronics CEO Jean-Marc Chery said making chips in China is important for staying competitive. The company leads in making energy-efficient Silicon Carbide chips, which are used in electric vehicles (EVs) by companies like Tesla and Geely. Chery explained that China’s EV market is the largest and most innovative, making it essential to work locally instead of from outside. He also said that the company is learning from its success in China to improve in other markets.
Fabio Gualandris, the company’s manufacturing head, said that producing in China is cheaper and faster because of its efficient supply chains and quick EV production cycle.
Experts like Wang Peng from the Beijing Academy of Social Sciences said China’s strong supply chain, big market demand, and government support make it a great place for semiconductor companies. This deal highlights China’s growing importance in the global chip industry.
Recently, China removed restrictions on foreign investments in manufacturing, making it easier for global businesses to work there. With a strong economy and focus on innovation, China is attracting more companies looking to grow and compete in its stable and fast-developing market.
Read the full article: Chinese, European firms step up semiconductor cooperation: report
