The first stone has been laid at the site of STMicroelectronics’ future chip packaging and test facility in Longgang, Guangdong Province, China, in the presence of senior officials of the Shenzhen Municipal government and other dignitaries.

The site will consist of up to 40,000 m² of manufacturing space, with capacity for approximately 5000 employees. The first 20,000 m² building is expected to be completed by the end of September 2008, followed by the installation of the manufacturing equipment in Q4 2008. When complete, the plant will be among ST’s largest packaging and test facilities in the world.

In its first year of operation, the packaging and test plant is expected to produce more than 800 million units. The output can scale to more than 10 billion units per year at full ramp-up, which would represent around 20 percent of ST’s current total back-end production.

“The Longgang plant will further strengthen ST’s presence and influence in the world’s fastest growing economic zone, enabling us to better address the expanding needs of both local and foreign customers’ operations in China, in the region, and around the world,” said Alain Dutheil, chief operating officer and vice chairman of the corporate executive committee, STMicroelectronics. “The new back-end facility will significantly reinforce ST’s world class manufacturing machine and enhance our competitiveness by expanding our presence in China’s exciting market.”