Suzhou Matsushita, a subsidiary of Matsushita, announced on July 14 that it will invest ten billion Yen to build a new semiconductor plant in China, with production expected to start in April 2006. Suzhou Matsushita already operates a semiconductor plant, which employs 1,500 people and has an annual production of two billion chips. With the new plant Matsushita's subsidiary projects to have 4,300 employees and an annual production of seven billion units by 2007, as local demand for chips in mobile phones and digital consumer offerings is growing.