Infineon is planning to invest $US1.2 billion in China by 2007 in order to double its share in the Chinese computer chip market to 10 per cent within the next five years.

"We have set ourselves ambitious goals in China and are confident that we can achieve them," chairman Ulrich Schumacher said. "In the next five years we aim to double our market share in China from its current 5.0 per cent to 10 per cent."

Although he did not elaborate on a time frame, Schumacher indicated that Infineon will focus primarily on memory chips and secure mobile solutions in China, with a goal of grabbing a 40 per cent share of the market for memory chips, while at the same time continuing to look for new partners and to set up new JVs in China.

"Joint ventures for front-end and back-end production in China are strategic steps that set us apart from our competitors. And they will greatly contribute to ensuring we succeed in our goal to achieve a greater market share," Mr. Schumacher said.

The Chinese semiconductor market is expected to triple in size to more than $US80 billion by 2007, Infineon said, quoting forecasts by market research firm iSuppli.