Shenzhen STS Microelectronics and Shenzhen Graduate School of Tsinghua University to Collaborate on Joint ASIC Research Center

Business Wire, Oct 25, 2002

Business Editors

SHENZHEN, China--(BUSINESS WIRE)--Oct. 25, 2002

Shenzhen STS Microelectronics and Shenzhen Graduate School of Tsinghua University have today announced the signing of a collaboration agreement to establish a joint ASIC Research Center.

Shenzhen STS Microelectronics is the joint venture company founded in 1994 between STMicroelectronics (ST), the world's third largest semiconductor manufacturer, and the Shenzhen Hi-Tech Industrial Company Limited (SHIC).

The joint center will focus on research and development of application specific integrated circuits (ASIC) using advanced digital and mixed-signal technologies, with the aim of providing semiconductor solutions optimized to meet local requirements in the fast-growing electronics market in China.

The collaboration will capitalize on ST's world leadership in providing advanced tools for ASIC design and test, integrated circuit process libraries, model parameters and design flow.

Shenzhen Graduate School of Tsinghua University and the Electronic Engineering discipline of Tsinghua University will contribute its rich pool of graduate and professional staff, equipment and its deep and extensive knowledge of the vast Chinese market. Several projects of significance to the Chinese market have already been identified and targeted for development, including telecommunications and digital multimedia applications.

The ASIC Research Center will be located for the time being in Tsinghua's research institute at Shenzhen High-tech Industrial Park and will move to its permanent home at Tsinghua University Campus in Shenzhen University Park, Xili Lake, Shenzhen in 2003.

Commenting on this joint initiative, Wu Minsheng, President of Shenzhen Graduate School of Tsinghua University said, "This collaboration with one of the world's most innovative and successful semiconductor manufacturers affords Tsinghua the unique opportunity to develop silicon for commercial applications and to become a center of excellence for ASICs by exploiting technology, talent and management skills of both parties."

Welcoming the collaboration, Jean-Claude Marquet, Corporate Vice President and CEO, ST Asia Pacific said, "As one of the leading semiconductor players in China today, ST is well placed to build on the success we have already achieved with our thriving Shenzhen Design Center in providing silicon solutions tailored to the needs of the local market. This new initiative with Tsinghua University will broaden and deepen our relationships with key players in one of the world's most exciting and fast-growing markets. Tsinghua's rich pool of graduate and professional staff and its well-earned and respected reputation are valuable assets that will serve this collaboration well."

Independent market analysts Gartner Dataquest expects the Chinese semiconductor market (including Hong Kong) to grow to more than US$20 billion by 2005, with a CAGR from 2001 to 2005 of 14.9%. ST was the no.3 semiconductor supplier in China in 2001, according to the same source, with a 7.0% market share - just 0.1% behind the no.2 supplier. In the overall Asia-Pacific market, Gartner Dataquest ranks ST at no.2 with a market share that has increased from 3.9% in 1999 to 5.4% in 2001.

The collaboration with Tsinghua University, an important addition to ST's established network of partnerships with leading Universities and research institutes in Europe, Asia and America, will allow a substantial increase in the number of complex silicon chips that are locally designed. This is particularly important in China, which is developing its own local standards in key areas such as 3G, smart cards, and digital TV broadcasting.

About Shenzhen STS Microelectronics

Shenzhen STS Microelectronics was established in 1994 as a joint venture company between STMicroelectronics (ST) (60%), and the Shenzhen Hi-Tech Industrial Company Limited (SHIC) (40%) to assemble and test semiconductor devices as well as provide microchip design services based on ST's submicron technologies. ST is today the world's third largest semiconductor company according to Gartner Dataquest's 2001 Ranking.

The Shenzhen Design Center has grown from an eight-man operation to a more than forty strong outfit. It is today one of the few advanced design centers in China working on fully customized circuit designs involving very complex digital and mixed-signal technologies. Since 1998, the Center has completed more than 20 projects, which saw circuit designs integrating various functions onto a single chip in applications targeted largely at the consumer segment.

Intended to bring ST's design capabilities closer to customers in China and neighboring countries, the Shenzhen Design Center complements the other full-custom design center in Singapore and has full access to design technologies available at ST worldwide

In 1998, the Center was awarded the prestigious status of `Shenzhen CAD Technology Consulting Service Center (Electronics)', he first such award given by the Shenzhen Science and Technology Bureau in recognition of its local state-of-the-art design products, IC CAD tools, methodologies, processes and highly-skilled engineers. In 1999, the Center received the "China CAD Applied Engineering Excellency Enterprise" Award from the State Government.