In another sign of China's growing prowess as a research center and not just a low-cost production site, Philips announced this week that it plans to almost double its China-based R&D staff to 1,300 over the next two years. Philips did not release any figures for the cost of the R&D expansion project.

 

Presently, the Dutch electronics company employs 700 people in China spread across 15 R&D facilities. The majority of the new positions will be located in Shanghai, including 50 additional engineers for its 100-plus mobile display screen R&D unit.

 

Philips' largest display manufacturing base is also located in China. The small display production facility has been in operation since 1989, making mobile phone, automotive, and avionic displays. Philips is counting on the spread of 3G (Third-Generation) mobile phone technology to drive future demand for more sophisticated displays.