Interview: German tech firm Heraeus to deepen investment in China amid innovation-driven growth, market potential

Frank Stietz, CEO and chairman of the Board of Managing Directors of leading German tech firm Heraeus Group, speaks during an interview with Xinhua in Zhaoyuan City of east China's Shandong Province, on Oct. 28, 2025.(Xinhua/Zhang Wuyue)

by Xinhua writers Wu Qiong, Tang Shining, Zhang Wuyue

BEIJING, Nov. 4 (Xinhua) -- In an exclusive interview with Xinhua, Frank Stietz, CEO and chairman of the Board of Managing Directors of leading German tech firm Heraeus Group, reaffirmed the group's confidence in China's market potential and its commitment to deepening investment, citing the market's vibrant innovation ecosystem and resilience -- from supply chains to economic growth -- as key drivers.

"China's semiconductor industry has developed very dynamically, especially over the past seven years," said Stietz, who joined Heraeus in 2015 as the global head of the group's electronics business. Back in 2015, manufacturing was a bigger focus, he said, adding that "China is now one of the most advanced innovation hubs globally."

He said that as a fast-growing market, China's semiconductor sector demands rapid new product development -- a trend to which Heraeus is adapting by expanding its local innovation footprint. "We are adapting our strategy with a clear focus on innovation," Stietz explained.

This commitment was underscored by his first trip to China since taking the helm as CEO in May. The trip included visits to two newly established innovation centers -- one at Heraeus's China headquarters in Shanghai Municipality, and the other in Zhaoyuan in Shandong Province, which is home to Heraeus (Zhaoyuan) Precious Material Co., Ltd.

The push for local innovation centers stems directly from Heraeus's "in China, for China" strategy, Stietz emphasized. "This means we not only manufacture locally but aim to have the entire value chain, including innovation and sales, to be close to customers and develop products tailored for the Chinese market," he said.

Beyond innovation, Heraeus has also prioritized supply chain and talent localization to strengthen its roots in China. On supply chains, Stietz noted that the group started early with two goals: ensuring supply chain security and developing local suppliers to maintain competitiveness and foster effective collaboration.

Talent localization is supported by both China's robust talent pool and Heraeus's long-term investment in workforce development. China's talent ecosystem is vibrant, with an excellent local talent pool backed by top-tier universities, according to Stietz. "We believe local talent should lead local business, which is vital for a global organization," he said.

This multi-faceted localization strategy is built on Heraeus's 50-year history in China -- a legacy that has made the market "essential" to the group. The Chinese market is one of the group's biggest markets, driven by factors such as a large population and demand from the strategic sectors the group serves, including semiconductors and steel, Stietz said.

"Our commitment to continuing to invest in China stems from the market itself," he noted. "We have benefited from the past 50 years of growth in China, and firmly believe in the resilience and strength of the Chinese economy for the next decades."

Looking ahead, the group will focus on innovation-driven investments, including new initiatives in the hydrogen and electronics sectors, Stietz said. ■