STMicroelectronics and Hyundai Semiconductor have jointly invested $2 billion to build a chip factory in Wuxi, China. Sources said that negotiations between STMicroelectronics and Chinese chipmaker Shanghai Grace Semiconductor are still in their infancy. He said: "STMicroelectronics is not willing to continue building factories, so the company hopes to find a partner and transfer technology to it."
The source also said that STMicroelectronics initially contacted a number of Chinese chip makers. In addition to Shanghai Grace Semiconductor, the company is currently negotiating with SMIC and ProMOS. It is not yet certain whether ST will acquire shares in potential Chinese partners or what production technologies will be used by both parties. However, STMicroelectronics is unlikely to establish another Chinese joint venture.
So far, spokespeople for STMicroelectronics, Shanghai Grace Semiconductor and ProMOS have declined to comment, and a spokesperson for SMIC said they would not comment on specific customers.
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