STMicroelectronics and Changan Automobile form partnership to better address Chinese market

Tuesday, June03, 2014: STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications and a leading supplier of automotive electronics, together with Changan Automobile, pioneer of China’s modern industry, announced a strategic partnership with the setup of the Changan – ST Automotive Electronic Joint Laboratory (the “Joint Lab”) at the premises of Changan Automotive Engineering, Global Research Institute.

The partnership aims to extend the cooperation of the two companies in automotive electronics, focusing on research and development in body, infotainment, powertrain, and safety applications to meet the demand of the local automotive electronics market. ST will also provide Changan Automobile with state-of-the-art automotive semiconductor solutions and products, together with technical support and employee training.

An Executive Committee and a Technical Committee will manage the operation and guide the research and development activities of the Joint Lab. ST will form an Expert Panel to provide training and support, as well as engage in the R&D activities of the Joint Lab and equip the lab with software tools and hardware equipment, including semiconductor solution kits, demo boards, and samples to address a broad range of automotive applications including Engine Management Systems, airbags, and Braking Management Systems.

ST provides a broad range of products for automotive applications, such as MCUs, power ICs, and dedicated chips. Throughout their long-term cooperation, ST and Changan have demonstrated an effective and proven approach to cooperation resulting in a number of achievements. These include formation of the library of automotive-grade, Changan-certified chips for enhanced system reliability and robustness, paving the way for Changan’s advanced research and development, and commercialization of new technologies through creating HW/SW platforms for car Body Control Modules.

With the setup of the Joint Lab, the cooperation will extend from current projects mainly on body application to cover other key sub systems in the car, including powertrain, safety, and infotainment. In addition, ST will join Changan Automobile in developing industry standards and providing advice, tailoring its IC designs to Chinese national standards, as well as in seeking more efficient and flexible business models.

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“STMicroelectronics has demonstrated its competence in semiconductor products and technologies in Asia, and China in particular, as well as around the world. They have shown us their innovative technologies and business solutions,” said Li Wei, Assistant General Manager, Changan Automobile and EVP, Changan Automotive Engineering, Global Research Institute. “The two companies have signed an agreement to establish the Joint Laboratory enabling an extended cooperation in terms of cost efficiency, technologies etc. I believe this Joint Lab will kick off a new opportunity of strengthened cooperation for Changan and STMicroelectronics, providing a broader platform of extensive exchanges and facilitating Changan’s own innovation and development of smarter cars. I believe we are opening a new chapter of cooperation for both companies. ”

“The extended cooperation with Changan, one of the pioneers of China’s modern industry, will help us better leverage the high potential of the automotive market in China, as well as the Greater China & South Asia region as a whole. The market and the consumers are increasingly asking for better fuel efficiency, safety, comfort, and infotainment, and we are bringing all the right ingredients to this joint initiative: leading-edge technologies and products, expertise, and total commitment to Automotive,” said Francois Guibert, Executive Vice President and President of Greater China and South Asia Region, STMicroelectronics.

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