PVA TePla AG seeks expansion in China’s booming semiconductor market

By Su Xiao Source:Global Times Published: 2018/3/28 19:23:40

The semiconductor and integrated circuit (IC) industry, which represents one of the biggest technological developments in China, is now undergoing a new round of upgrades and confronting new challenges. And Germany-based semiconductor equipment supplier PVA TePla AG's strategy in China will play a critical role in influencing those trends.

The company, headquartered in Wettenberg, a town which is about a one-hour drive from Frankfurt, is a leading player in the German semiconductor equipment industry. With over 10 subsidiaries around the world, the company has been listed on the main boards of the Frankfurt Stock Exchange since 2002. It also has more than 500 employees globally, with more than half of them being technical staff.

PVA TePla's founder and strategic adviser Peter Abel told the Global Times that in 2017, sales in the Chinese market accounted for over 30 percent of PVA TePla's total global sales.

"We have so far set up two subsidiaries in China - one is in Beijing and the other is in Xi'an, capital of Northwest China's Shaanxi Province. In the next two years, we plan to cooperate more with Chinese peers, localizing our production lines, bringing technical German-made products to China and contributing to the development [of China's semiconductor industry]."

Abel, who received degrees in high-energy physics and thermal engineering, said that the company's product lines are very wide-ranging and involve the manufacturing and processing of high-tech materials as well as measuring and testing semiconductor materials. 

"From equipment for growing single crystal for large-scale integrated circuits, to single crystal furnace equipment for the power electronics industry, to equipment for growing silicon carbide single crystal for fifth-generation telecommunication and electrical vehicles…. All that equipment is representative of the company's core competitiveness," the founder noted.

He also stressed that the Chinese market has always been the company's most important market, "not only now but also in its founding stage," and is confident about the prospect of China's ever-developing semiconductor industry.

Xie Xiuhong, the general manager of PVA TePla's Chinese branch, further illustrated the company's future plan in China in an interview with the Global Times.

"Thanks to the fast development of the domestic semiconductor industry, we have established our Chinese semiconductor branch in Xi'an - a well-known industrial and technological powerhouse - to further boost the sales of our semiconductor equipment, not only in the city, but also across China," Xie said.

Regarding the company's localization strategy, Xie said that PVA TePla has already started working on building supply chains and identifying partners in China.

"Hopefully, we can begin local manufacturing in China soon," she noted.

Xie added that "a lot of parties have paid attention to PVA TePla since the company entered Xi'an." And in return, she said, the semiconductor supplier will adjust strategies based on demands from Chinese partners.

"Through collaborating with Chinese firms, we can help them to break through the technological bottleneck and elevate their competitiveness in the ongoing rounds of technology," she said.

After years of operation, PVA TePla has also developed techniques, cultivating a number of development and research talents, Xie added.

Xie has been working for PVA TePla for 12 years, growing from a technical staff member to the person in charge of the company's Chinese semiconductor market. Her promotion also reflects the German company's dedication to the Chinese market.


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