(Yicai Global) Sept. 5 -- NXP Semiconductors, previously a takeover target of the world's biggest chip maker Qualcomm, will focus on China's auto electronics and Internet of Things markets and aims to roll out new products as soon as possible.

"We will mainly engage in two sectors in the country, namely, auto electronics and IoT," said Zheng Li, president of the Dutch firm's China business at the NXP Connects China 2018 media day held on Sept. 4. Taking electrification and digitalization as a basis, NXP aims to bring out products for suppliers as soon as possible, he added.

NXP has gained a renewed focus on the Chinese market in recent years, boosting its number of chip developers by close to one-third since 2015.

The firm will continuously bolster capacity in terms of local research and development in the country as part of efforts to introduce localized products, Zheng said. "For example, we just unveiled the IMX RT product series with the aim of meeting the needs of the Chinese market and it was our local engineers that led the development."

NXP has also been dealing with the aftermath of Qualcomm's failed takeover. The US-based global chip leader mounted a USD 44 billion acquisition bid in late 2016 before ultimately abandoning the plan after failing to gain regulatory approvals in China in July this year.

Senior Vice President and Chief Technology Officer for Auto Electronics Lars Reger dismissed the impact of the failed merger, saying that it would have limited influence on NXP's expansion plans.

Reger expects some 12 percent of vehicles to be electric by 2020 amid the popularization of technologies such as autonomous driving. NXP is accelerating adjustments in the auto business to keep pace with the changing industry to supply core products in core fields, he added.

"At present, we are leading our rivals in the auto semiconductor market and will try our best to keep our advantages," said Reger, adding that expansion plans are focused on technology collaborations with other businesses in a variety of fields.

NXP cooperates with Shanghai-based Semiconductor Manufacturing International Corporation on the localization of chip production and also collaborates with local algorithm firms on pushing forward the application of artificial intelligence technology.

The firm has also joined hands with multiple local players such as search giant Baidu, connected car solutions provider Pateo and state-owned carmaker BAIC Group to embed safety payment chips in BAIC vehicles.

During the conference, Zheng also revealed that NXP is working with Alibaba without going into detail.

The company is actively looking for more partners in the local market. "Facing the great opportunities in fields of AI-IoT and internet vehicles, we are looking forward to teaming up with more Chinese companies to manufacture more innovative benchmarking products based on our industry-leading technology," said Steve Owen, NXP Executive Vice President of Global Sales and Marketing.

Editor: William Clegg