SAN FRANCISCO STMicroelectronics is gunning for the top position in supplying semiconductors to China, according to the company's top executive in the region.
According to a statement issued by ST Wednesday (March 29), Bob Krysiak, ST corporate vice president for Greater China, said at a meeting in Beijing that the company intends to strengthen its Chinese presence and expand its network of relationships with "tomorrow's giants."
ST said it is currently ranked as the No. 3 semiconductor supplier to the Chinese market by analyst firm iSuppli Corp. (No. 2 excluding microprocessors).
"We plan to become the No. 1 [supplier], reinforcing our position as a leading player in this market," said Krysiak said. "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."
ST established its Greater China organization, naming Krysiak its leader, last October.
Work began last year on a $2 billion ST-Hynix Semiconductor memory joint venture in Wuxi City (ST owns 33 percent stake). ST said Wednesday that the facility would be completed later this year.
Supplementing the company's existing assembly and test plant in the Futian Free-Trade Zone of Shenzhen, ST is planning to invest $500 million to build a second back-end plant in Longgang, China, which is expected to start production in 2008.
According to a report earlier this month by investment banking firm Piper Jaffray Inc., ST is in negotiations with Chinese silicon foundry specialist Shanghai Hua Hong NEC Electronics Co. Ltd. about a 300-mm partnership.