Nexperia hosts successful Standard Products Industry Summit

Nexperia Semiconductor (China) Co., Ltd. celebrated the opening of its new factory on March 6, 2018. The same afternoon, the company hosted its first Nexperia Standard Products Industry Summit - an interactive platform that brings together industry authorities, associations, experts, and business partners to discuss the latest development trends in China's semiconductor and IC sector.

The Summit focused on the theme "Industry Landscape and Business Development Trends in Semiconductors, IC, and Standard Products in China." Numerous lively discussions were held concerning the rapid development of China's semiconductor industry.  Participants agreed that Nexperia is playing a leading role with major customers in various industries, addressing industry trends and national and international programs, and strengthening partnerships to more effectively and rapidly support local and global customers' demands.

Mr. Ren Aiguang, Director of the Semiconductor Integrated Circuits Division of the China Electronics Standardization Institute and Mr. Ye Shengji, Deputy Secretary-General of the China Association of Automobile Manufacturers gave speeches. The Summit also featured a enthralling lineup of keynote speakers, including Nexperia’s Senior Vice President Sales Greater China and General Manager China, Mr. Paul Zhang, Chief Professor of Industrial Economics at Renmin University of China, Doctoral Advisor, and Advisor of National Manufacturing Strategy Advisory Committee Dr. Xu Jiabin, and Chairman of Vanguard International Semiconductor Corporation Mr. Fang Leuh.

Nexperia’s Senior Vice President Sales Greater China and General Manager of China Mr. Paul Zhang gave the opening address

Opening, Paul Zhang welcomed the honoured guests attending the summit and provided details about Nexperia, the company’s new factory in Guangdong and product launches. He emphasized that: "Nexperia is dedicated to becoming a global leader in the production and sale of discrete, logic, and MOSFETs. Nexperia has more than 60 years of experience in the semiconductor business and it maintains the highest standards to provide the world’s most demanding industries with top quality products that meet the most rigorous requirements. Nexperia has more than ten thousand active products and provides customers with a one-stop shop for discretes, logic, and MOSFETs. With the increased production in the new factory in Guangdong, Nexperia's annual output will exceed 100 billion units. To put it another way, Guangdong produces more than 2,000 units every second." In addition, Zhang also pointed out that Nexperia's business development strategy in China is to achieve a growth rate of double the GDP in order to support the rapid development of China's economy. Nexperia's production and manufacturing strategy in China guarantees the available capacity for rapid development in the market - with a special focus on the automobile and mobile communications markets. Nexperia will also expand product lines and significantly increase investment to improve capacity so that it is able to provide even better services to global customers.

Dr. Ren Aiguang noted that the government work report proposed including the development of industries such as integrated circuits, new energy vehicles, 5G, and new materials as key work items because these industries have two common traits. The first is their strategic value and the second is their market value. The strategic value refers to the penetration and leading role of these industries which are closely related to China's technological and industrial competitiveness. In terms of market value, the global IC market grew to $400 billion in 2017. The scale of the market is immense and the industry has a very favorable outlook. Industry authorities will also provide assistance in the industry's future development by improving the industrial, personnel, market, investment, and financing environments. Dr. Ren Aiguang also expressed hope that Nexperia's new factory will reach optimal performance as quickly as possible so it can make significant contributions to the development of the semiconductor industry.

Director of the Semiconductor Integrated Circuits Division of China Electronics Standardization Institute Dr. Ren Aiguang

Deputy Secretary-General Mr. Ye Shengji stated: "With more than 100 years of development in the automobile industry, the industry has undergone dramatic changes and contributed greatly to the development of the global economy. The Chinese automobile industry is a pillar of the national economy and it has also made major contributions to the development of the China's economy. Over the course of more than 60 years of development, the Chinese automobile industry has achieved the establishment of the automobile industry system and facilitated the transformation of the automobile industry from reverse development to positive development. It has also made outstanding achievements in developing multiple Chinese brands from scratch. Nexperia has played a successful part in the development of the automobile electronics sector. This is where China's hope of building a nation of drivers lies. The Chinese automobile industry has achieved great results this year and sales of vehicles in the overall automobile industry reached 29 million. We must specifically acknowledge the advancement of Chinese automobile brands in this process, particularly the advancement of new energy and smart vehicles. These would not have been possible without the support and contribution of automotive electronics companies. The automobile industry is shifting toward low-carbon, informatized, smart, and shared development which requires the support of the automotive electronics sector, therefore the goal of becoming a nation of drivers requires support from Nexperia."

Deputy Secretary-General Mr. Ye Shengji of the China Association of Automobile Manufacturers

Chairman Vanguard International Semiconductor Corporation Mr. Fang Leuh gave an exciting speech on "Driving Trends and the Growth of Nexperia, Vanguard, and the Chinese Semiconductor Industry". He first introduced the trends in global and Chinese semiconductor and automobile electronics industries. He highlighted applications that would drive the market value to US$500 billion in 2023, such as automotive electronics, IoT, artificial intelligence, and 5G. The demand of the Chinese semiconductor industry as a ratio of the global market has grown from 5% in 2000 to 48% in 2017, reaching a scale of US$200 billion. It is the single largest market in global semiconductor consumption. In the automobile electronics sector, China's total production of vehicles will account for 30% of global output by 2023. The compound growth rate from 2017 to 2023 will be 3%. China, he said, is the only country with such an economy of scale and power for growth. China's IC production goals include gradually gaining control of the IC industrial chain including the design, manufacturing, packaging and tests, equipment, and materials under the guidance of the policies of "IC Industry Development Guideline of 2014" and "Made in China 2025" in order to achieve leading technological levels that comply with international standards. Mr. Fang Leuh later introduced the development of Vanguard and cooperation with Nexperia.

Chairman Vanguard International Semiconductor Corporation Mr. Fang Leuh