The Right Approach: Get Ready for ISO 9001 Version 6
Dan’s Biz Bookshelf: ‘Still Broke: Walmart’s Remarkable Transformation'
Driving Innovation: Depth Routing Processes—Achieving Unparalleled Precision in Complex PCBs
European and Japanese IDMs Strengthen Collaboration with Chinese Foundries to Capture ‘China for China’ Opportunities
January 9, 2025 | TrendForceEstimated reading time: 1 minute
TrendForce’s latest investigations reveal that geopolitical dynamics are accelerating the formation of the “China for China” supply chain, driven by China’s vast domestic market. This trend is particularly evident in the automotive sector.
The Chinese government has set a goal for domestic automakers to increase the use of locally produced chips to 25% by 2025 while also encouraging foreign companies to localize their production. In response, major automotive chip suppliers such as STMicroelectronics, Infineon, NXP, and Renesas have been exploring partnerships with Chinese foundries—including SMIC and HHGrace—aiming to accelerate diverse platform development.
Historically, Chinese foundries have faced challenges securing automotive MCU outsourcing orders from IDMs due to slower progress in eFlash/eNVM manufacturing processes and the lengthy automotive-grade and OEM verification processes required.
However, recent geopolitical pressures, along with the launch of affordable EV models in China, have driven automotive suppliers to prioritize cost-efficient solutions. This cost focus—combined with the “China for China” strategy—has led to a more proactive space for European and Japanese IDMs to collaborate with these foundries.
TrendForce reports that STMicroelectronics has taken the lead by partnering with HHGrace to develop 40nm industrial/automotive-grade MCUs. Mass production is expected by late 2025 if development progresses smoothly. Meanwhile, Renesas and Infineon began discussions with Chinese foundries in 2024 for contract manufacturing partnerships. NXP recently announced plans to establish a supply chain in China. While there are no immediate plans for setting up a local manufacturing plant, discussions with Chinese foundries for contract production are ongoing.
For overseas foundries with operations in China, the ability to assist customers in transitioning products across platforms and manufacturing facilities to meet localization requirements presents both opportunities and significant challenges. Price competition with domestic Chinese foundries remains intense, adding pressure to sustain profitability.
TrendForce emphasizes that while IDMs and Chinese foundries are building partnerships in automotive and industrial control chip sectors, these products must undergo rigorous validation standards and OEM certifications that far exceed those required for consumer applications.
TrendForce forecasts that IDM-manufactured products under the “China for China” strategy are expected to enter mass production in the second half of 2025, contributing to revenue growth. The impact of these collaborations is projected to expand further by 2026, solidifying the role of these partnerships in the evolving semiconductor landscape.
Share on:
Testimonial
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
Global Citizenship: Together for a Perfect PCB Solution
09/10/2025 | Tom Yang -- Column: Global CitizenshipIf there’s one thing we’ve learned in the past few decades of electronics evolution, it’s that no region has a monopoly on excellence. Whether it’s materials science breakthroughs in Europe, manufacturing efficiencies in China, or design innovations in Silicon Valley, the PCB industry thrives on collaboration.
Dan's Biz Bookshelf: 'Apple in China: The Capture of the World’s Greatest Company'
09/04/2025 | Dan Beaulieu -- Column: Dan's Biz BookshelfMost of what we hear about Apple’s relationship with China is half-baked punditry or political noise. However, Patrick McGee’s "Apple in China: The Capture of the World’s Greatest Company" is a tour de force that peels back the PR polish and shows us what’s really going on behind that gleaming bitten fruit.
More Than a Competition: Instilling a Champion's Skill in IPC Masters China 2025
09/01/2025 | Evelyn Cui, Global Electronics Association—East AsiaNearly 500 elite professionals from the electronics industry, representing 18 provinces and municipalities across China, competed in the 2025 IPC Masters Competition China, March 26–28, in Pudong, Shanghai. A total of 114 contestants advanced to the practical competition after passing the IPC Standards Knowledge Competition. Sixty people competed in the Hand Soldering and Rework Competition (HSRC), 30 in the Cable and Wire Harness Assembly Competition (CWAC), and 24 in the Ball Grid Array/Bottom Termination Components (BGA/BTC) Rework Competition.
TTM Technologies: Bridging East and West with Strategic Expansion
08/25/2025 | Marcy LaRont, I-Connect007As global supply chains shift and demand for supply chain resiliency grows, TTM Technologies is expanding with purpose: bolstering its U.S. presence while maintaining a strong footprint in Asia. With recent moves in Wisconsin and Malaysia, the company is positioning itself to better support customers amid an evolving geopolitical landscape. In this interview, President and CEO of TTM Technologies Tom Edman discusses TTM’s expansion strategy, the future of manufacturing, and his planned retirement after his long tenure at the helm of the company.
China’s Rare Earth Exports to US Surge 660% After Trade Agreement
07/23/2025 | I-Connect007 Editorial TeamRare earth element exports from China to the U.S. rose by 660% monthly, according to information released by Beijing’s General Administration of Customs, MSN reported.