U.S.-based Monolithic Power Systems (MPS) has launched a major production line expansion at its facility in the Chengdu Hi-Tech Industrial Development Zone, underscoring continued investment in high-end analog power management chips despite growing geopolitical competition across global technology supply chains.
Chengdu Monolithic Power Systems Co., the company's wholly owned subsidiary and Asia-Pacific research and operational hub, added nearly 10,000 square meters of manufacturing space inside the Xinchuang Zhigu industrial park. The expansion nearly doubles the firm's local footprint to roughly 20,000 square meters. Located inside the Chengdu Hi-Tech Comprehensive Bonded Zone B, the facility produces high-performance analog and mixed-signal power management ICs used in cloud computing, automotive systems, industrial automation, telecommunications, and consumer electronics.
To accommodate the high-precision equipment required for advanced chip manufacturing, local park operators deployed customized facility engineering featuring 7.5-meter ceiling heights, floor load capacities of 2,000 kilograms per square meter, and a dual-circuit power grid upgraded to 24,000 kilovolt-amperes. The park, which has now reached 100 percent occupancy, also houses Universal Display Corporation's (UDC) Chengdu OLED Technology and Innovation Center, supplying material testing and technical support to major regional display manufacturers including BOE.
The expansion in western China unfolds against a broader regional push across East Asia to fortify chip production.
In South Korea, President Lee Jae Myung's administration recently established a 5 trillion won ($3.5 billion) state semiconductor fund targeting materials, parts, equipment, and fabless designers. The effort complements a domestic mega-cluster project where memory giants Samsung Electronics and SK Hynix have pledged combined investments exceeding 800 trillion won ($565 billion) to build out new fabrication hubs in the country's southwestern region.
Concurrently, Washington is stepping up pressure on foreign memory manufacturers to increase capital investments and build advanced wafer fabs within the United States. The competing industrial strategies underscore global anxiety over fragile tech supply chains, raw material dependencies, and chip availability as surging artificial intelligence deployment drives historic demand for high-density memory and power management silicon worldwide.
