STMicroelectronics and TJ FAW Xiali Automobile Inaugurate Joint Automotive Application Lab


Enabling Chinese automotive eco-players to innovate through R&D projects in Engine Management System, Power-train and In-vehicle infotainment.

Beijing, December 15,2007 -

STMicroelectronics (NYSE: STM), a leading supplier of automotive electronics, and TIANJIN FAW Xiali Automobile (Shenzhen Stock Exchange: 000972), a China-based automotive manufacturer, today inaugurated the Joint Automotive Application Laboratory in Tianjin, China. Both parties will cooperate in a joint effort to research and develop advanced automotive application solutions for TJ FAW and its vendors in the areas of power train, electric module, development Calibration, power-train control by new energy sources and in-vehicle infotainment.

As China's first application laboratory sponsored jointly by a major car manufacturer and a leading semiconductor supplier, the TJ FAW-ST Automotive Application Lab will focus on Engine Simulation and Engine Management System (EMS) design in EMS systems, Transmission Control Unit (TCU) system simulation, TCU design in the power train, power-train control by new energy sources and in-vehicle infotainment. The first proven application solution is scheduled to be completed in two to three years, which will enable TJ FAW to integrate the solution into their future car models, offering reduced costs and a higher ratio of localized modules for manufacturers, thereby driving the development of sustainable innovation in local low- to mid-range car markets.

"China is currently the second-largest car market and the third-largest producer globally. The fast-growing demand in this sector will certainly stimulate the explosive growth of automotive applications," said Qun ZHANG, Vice General Manager of TJ FAW and director of the product development center, "The timely cooperation between ST and TJ FAW will provide products with optimized cost-performance ratio for our future car models, as well as allow us to keep abreast of advanced technological development, raising the satisfaction level of consumers in China.. In turn, the high-growth automotive industry will accelerate the offering of an entire value chain around the Bohai Gulf."

"ST is strongly positioned in the applications of power-train, body, safety as well as entertainment and digital broadcast; our standing is well recognized among Chinese car makers," said Bruce Liu, Automotive Product Group Director, Greater China Region of STMicroelectronics, "This effort has confirmed our commitment to keep up with China's automotive market through the introduction of advanced technologies to local car makers, which will not only accelerate the development of car manufacturing in China, but also integrate ST's leading technology into the Chinese automotive market."

According to iSuppli, the automotive market will double by 2011, reaching US$18.4 billion, while automotive semiconductors will be worth US$2.8 billion, an increase of nearly 100% from the figure for 2006. Participating in Chinese automotive standardization, ST is contributing to the development of the Chinese automotive industry as it enters the crucial phase of independent innovation.

According to iSuppli, ST is ranked as the number one semiconductor supplier in 2006 in the Chinese automotive market, seizing a market share of 15.7%. Attracted by ST's leading-edge technologies and rich expertise in auto applications, TJ FAW chose to team up with ST on the Joint Lab. In this cooperation, TJ FAW shall provide financial support and technical staff for the lab, and ST shall assign a team of experts to the lab for training and technical support, along with the provision of the automotive application ICs required for the R&D projects. Tianjin University and China Automotive Technology Research Center will also join in the R&D effort at this lab.

Tianjin FAW Xiali Automobile Co., Ltd is one of China's major car manufacturers with its own brand of cars focusing on low-end to mid-range cars, with an annual output of 200,000 cars. In 2006, it produced 202,000 cars. The company plans to overcome the challenge from the highly competitive economic car market and sharpen its competitive edge through the development of automotive electronics systems and modules.

About Tianjin FAW Xiali Automobile Co., Ltd.

Tianjin FAW XIALI Automobile Co., Ltd. is a manufacturer of economical passenger cars controlled by China FAW Group. It is a listed company engaging in automobile manufacturing, engine and transmission production, sales and research & development.

About STMicroelectronics

STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2006, the Company's net revenues were $9.85 billion and net earnings were $782 million. Further information on ST can be found at www.st.com.

Information last updated Jan 2007

All Topics