The US-based On Semiconductor announced that it plans to expand its joint venture operation in Leshan, Sichuan Province.

In an aggressive stance with regard to its future business growth in China, On Semiconductor plans to become the first foreign company to introduce 6-inch wafer manufacturing to western China.

The company, a global leader in the design and manufacture of power management and broadband chips, recently obtained approval from the Chinese Government to expand Leshan-Phoenix Semiconductor Co Ltd, its joint venture formed in 1995. On Semiconductor said it will invest up to US$231 million in new operations.

On Semiconductor and joint venture partner Leshan Radio Company plan to first produce advanced metal-oxide semiconductor devices and progressively introduce more sophisticated analog technologies down to 0.25 micron following the completion of the expansion efforts.

The US company is a pioneering technology manufacturer in western China, where it owns more than 50 per cent of the joint venture. On Semiconductor was known as Motorola Semiconductor Components Group at the time.

Leshan-Phoenix produces more than 10 billion chips a year and has been the largest foreign-invested enterprise in Sichuan as well as one of its largest electronics exporters.

"With its impressive quality record and growing reputation, Leshan-Phoenix has provided us with a competitive advantage in China and around the world. This expansion will enable us to meet the needs of our growing customer base of indigenous Chinese companies and multinational enterprises within the country," said Steve Hanson, president and CEO of On Semiconductor.

China is forecast to become the second largest semiconductor market in the world before the end of this decade," Hanson said.