STMicroelectronics Lays First Stone for Back-End Plant in China

(Business News & Technology News, 6 Nov 2007)

STMicroelectronics has laid the first stone at the site of its future chip packaging and test facility in Longgang, Guangdong Province, mainland China.

ST's Longgang site has been designed to house up to 40,000 square meters of manufacturing space, with a capacity for approximately 5,000 employees, when fully built out. The first 20,000 square meter building is expected to be completed by the end of September 2008, followed by the installation of the manufacturing equipment in the fourth quarter. When complete, the Longgang plant will be among ST's largest packaging and test facilities worldwide.

In its first year of operation, the Longgang packaging and test plant is expected to produce more than 800 million units. The output can scale to more than 10 billion units per year at full ramp-up, which would represent around 20% of ST's current total back-end production. The Longgang plant will primarily assemble and test ST's power conversion devices.

"The Longgang plant will further strengthen ST's presence and influence in the world's fastest growing economic zone, enabling us to better address the expanding needs of both local and foreign customers' operations in China, in the region, and around the world," said Alain Dutheil, COO and Vice Chairman of the Corporate Executive Committee, STMicroelectronics. "The new back-end facility will significantly reinforce ST's world-class manufacturing machine and enhance our competitiveness by expanding our presence in China's exciting market."

STMicroelectronics is a long-time leader in the China semiconductor market with a strong integrated presence of manufacturing, design, research, sales and marketing operations. In 2006, ST was the fourth largest semiconductor supplier in Greater China (China, Hong Kong and Taiwan).

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