Finding the way forward by going out

The country is actively encouraging domestic enterprises to carry out transnational operations, and a number of enterprises based in Wuxi, Jiangsu province, are among those leading the way.

The Wuxi-based Jiangsu Changjiang Electronics Technology Co Ltd is a typical example.

Established in 1972, JCET is one of the largest packaging service providers in China, with a registered capital of $159 million, and total assets of $ 3.9 billion, and the chair of the Chinese IC Packaging Industry Technology Innovation Strategic Alliance.

The company owns more than 2,600 domestic and foreign patents, of which about 40 percent are invention patents, and it is an international leader in the field of IC technology.

Wang Xinchao, chairman of the company, said the company's success lies in constant innovation and its efforts to achieve industry breakthroughs.

He said the company has successfully grasped a series of opportunities during its development, which has enabled it to be a world leader in the industry.

In 2013, the company started to transfer its low-end products to other areas with its headquarters focusing on high-end substrate IC packaging assembly.

In 2014, the company formed a joint venture with Semiconductor Manufacturing International Corporation, the largest and most advanced pure foundry provider in China, for 12-inch bumping and related testing.

As China's first-ever domestic 12-inch advanced IC manufacturing supply chain, it helps shorten the overall manufacturing cycle time.

"The joint venture combines the two companies' strengths and enhances our long-term relationship. Furthermore, it will focus on upgrading the domestic 3-D IC industry chain to world-class standards," Wang said.

One important move for the company was the successful acquisition of the Singapore's STATS ChipPAC Ltd in 2015, which took the leading place in the industry worldwide and owned advanced technology, international management experience and talents, which were extremely beneficial to the development of JCET.

After the acquisition, JCET's innovation abilities significantly improved and it mastered a large number of customers, including world-leading semiconductor companies.

JCET now has seven manufacturing bases and six R&D centers in countries such as China, Singapore, South Korea and the United States, with each having a different function.

In addition to JCET, many other enterprises in Wuxi have constantly explored a growth path by moving into overseas markets.

A leading enterprise in R&D, manufacturing and global trade, Hodo Group has expanded its presence in Sihanoukville, a province in southern Cambodia, trying to increase its business scale.

The company has made great investments since 2007 helping establish the Sihanoukville Special Economic Zone.

Jointly developed by the Cambodian and Chinese governments, the zone covers an area of 11.13 square kilometers, and now attracted 100 enterprises and has 148 manufacturing plants.

And the zone is expected to help create 100,000 jobs for local region. Hodo was among the first Chinese enterprises to enter the zone.

Benefiting from the low costs, favorable trade conditions and the vast market of southeastern Asian countries, the company has enjoyed great development opportunities there. The international clothing and garment business of Hodo entered into the zone in 2010, and now established four production lines for trousers and suits.

wanghongyi@chinadaily.com.cn

Highlights

The Wuxi government has made a series of efforts to encourage local enterprises to expand into overseas markets in recent years. By the end of 2015, enterprises in Wuxi had invested in 809 projects in 84 countries and regions with a total investment of $6.82 billion, according to the local authorities. As part of the country's Belt and Road Initiative, Wuxi has issued a series of policies to encourage overseas investments. For example, it has promoted the establishing of Cambodia Sihanoukville Special Economic Zone, and it is predicted that about 100 Wuxi enterprises will set up branches in the SSEZ. To support overseas investment projects, the Wuxi government has arranged for banks and other commercial insurance organizations to provide onsite services and to help companies solve practical problems.

(China Daily European Weekly 07/08/2016 page24)