Global largest producer of silicon carbide chips for electric vehicles, STMicroelectronics, announced a partnership plan with Hua Hong Semi (01347.HK), emphasizing the crucial importance of setting up production in China for its competitiveness. The company is collaborating with China's second-largest custom chip maker, Hua Hong Semi, to prepare for the production of 40-nanometer microcontroller chips in Shenzhen by the end of next year. Last year, the company established a silicon carbide chip joint venture with Sanan Optoelectronics in Chongqing, with Sanan Optoelectronics supplying wafers.

STMicroelectronics CEO Jean-Marc Chery pointed out that China is the largest and most innovative market for electric vehicles, making it indispensable. Producing overseas is not feasible for competing. He stated that abandoning market share in China would lead to local competitors monopolizing the market. Due to the enormous domestic market in China, it serves as an excellent platform to compete with other countries. He mentioned that the company is applying the operations and technologies learned from the Chinese market to Western markets. The story of introducing Western technology into China has come to an end.