STMicroelectronics 07 ~ 08 years of semiconductor industry growth of 2 digits

STMicroelectronics (STMicroelectronics) president and CEO Carlo Bozotti during his visit to Japan, held a press conference in Tokyo on November 2, 2005.

Carlo Bozotti at a press conference on the third quarter of 2005 (as of October 1, 2005) the company's performance summary, said the momentum is strong, is in accordance with the original forecast of smooth development". In July 2005 the company predicted that its sales will be the highest in the second quarter, an increase of 6%. Results increased 4% to $2 billion 247 million. To promote its growth is the mobile phone and computer peripherals semiconductor business. Fourth quarter is expected to grow from the previous quarter to 3% ~ 9%.

According to Carlo Bozotti said that the current period of stagnation in the semiconductor market. According to the company's survey data, it is predicted that the growth of the whole market in 2005 is about 5% ~ 6%, in 2006 was a total of only 1 digit growth of only 8%. But from 2007 to 2008 will be gradually restored, is expected to achieve 2 digit growth again.

Specialized agencies of the Chinese market

From different regions of the sales point of view, as the most potential areas in the future, referred to China and japan. This is because, as the final semiconductor consumer market in 2010, China and Japan's share is expected to account for 20%. Over the same period, Europe and the Americas (North, central and South America) market is expected to be 17% and 16%.

Among them, in order to strengthen the operation of the Chinese market, in October 2005 from the original responsible for the entire Asian market in the existing institutions independent of a specialized agency for the Chinese market. The agency was established in Shenzhen and other places to recruit 4000 employees. The vast majority of employees are responsible for production, but 1000 employees are responsible for design, sales and marketing operations. Currently, in addition to Shenzhen, but also in Shanghai and Beijing set up a design base. Carlo Bozotti also said it has collaborated with universities in Shanghai in R & D.

In terms of research and development, as has been said above, by recruiting talent in China and India, it has been reported that the company has doubled the number of R & D personnel compared with 6 years ago. R & D expenses in the proportion of sales are continuing to improve. 2000 at the end of, the third quarter of 2005 has increased to sales of 18%. From the beginning of the first quarter of 2002, R & D costs have continued to grow.