By Wang Xu (China Daily)
Updated: 2007-08-04 09:57

Tektronix Inc, a supplier of electronics and semiconductor testing equipment, expects sales from China to rise more than 10 percent this year - almost double its global revenue growth, a company executive said.

"China is now one of the fastest-growing markets for Tektronix and we expect the momentum to continue in the coming years," said Rick Wills, chairman, president and CEO of Tektronix.

China is now the third-largest market for the US company, accounting for almost 10 percent of its $1.1 billion of sales in 2006. It expects the country to account for more than 10 percent of its global sales in one or two years, going on current market demand, Wills said.

"The nation has unveiled a number of innovation investments that are in line with our key products, such as third-generation (3G) mobile services and digital TV," said Neil Huddlestone, president of Tektronix's China operation.

The New York Stock Exchange-listed company supplies testing equipment to industries such as semiconductors, telecom and TV and broadcasting. Currently, 55 percent of its products are used in research and development (R&D) by technology companies like Intel Corp and AMD.

Tektronix has joined forces with authorities in China to develop technology standards such as the home-grown 3G TD-SCDMA. The company is betting on the strategy to give it an edge over competitors.

It said on Thursday it's setting up a joint research lab with the China Electronics Standardization Institution, a State-owned group responsible for standardization and conformity assessment of the country's IT industry. The lab will be used for research and assessment of digital radio frequency and digital TV standards in China.

"The deployment of 3G and digital TV services in China will give Tektronix's business here a further boost," said Wills. "We have been working with local standards authorities preparing related products for years."

The company began working with Datang Mobile to develop the TD-SCDMA in 2003, the first international testing equipment provider to do so. Although it's still unknown when the services will be put into commercial use, Tektronix has already seen "millions of dollars" from sales of related products, according to Wills.

The company's manufacturing facility in Shanghai churns out equipment representing 20 percent of its global sales of those products each year. It also has eight sales offices and an R&D center in China.

(China Daily 08/04/2007 page10)