Beijing (TDI): European semiconductor giant STMicroelectronics has announced a collaboration with Hua Hong Semiconductor, China’s second-largest bespoke chip maker, to manufacture microcontroller chips in Shenzhen, South China’s Guangdong Province by the end of 2025.
The partnership signals a growing trend of international firms increasing their presence in China’s semiconductor sector, which is known for its expansive market and reliable supply chains.
STMicroelectronics, a leading producer of energy-efficient Silicon Carbide chips for electric vehicles, emphasized the importance of local manufacturing in China to maintain a competitive edge.
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Jean-Marc Chery, CEO of STMicroelectronics, stated that the Chinese market, being the largest and most innovative for electric vehicles, is crucial for the company’s success, adding that competing without a presence in China is not viable.
The collaboration highlights China’s robust semiconductor supply chain and its pivotal role in global manufacturing.
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This development comes as China continues to open up its market, including a recent policy shift removing restrictions on foreign investment in the manufacturing sector.
This move is expected to further attract international businesses, capitalizing on China’s vast market potential and technological advancements.
