AMSTERDAM, March 12 (Reuters) - China remains an

important growth market for French-Italian semiconductor

STMicroelectronics, despite increasing U.S-China tensions over

semiconductors, the company's chief executive said on Tuesday.

Speaking at a Citi technology conference in London, CEO

Jean-Marc Chery said the company is not daunted by plans by

Chinese chipmakers to invest in relatively older generations of

chips, following a US-led campaign to prevent Chinese companies

from being able to make their own advanced chips.

He said the company views it as essential to be in the

Chinese market for electric vehicles, digital power controls and

renewable energy.

STM is a

major maker

of automotive chips and microcontrollers, competing with

companies who make chips at less advanced manufacturing nodes

(sizes) such as Texas Instruments ( TXN ), NXP, ON

Semiconductor and Renesas.

Industry group SEMI forecasts chipmakers in mainland

China will add around 12% to their capacity this year, more than

any other country, helped by substantial government subsidies.

For us it is a risk for sure to have seen this massive

investment of mainstream technology by Chinese chipmakers, Chery

said. "But it's also an opportunity."

But he said the company's strategy of investing in local

production, including its joint venture with Sanan

Optoelectronics to produce silicon carbide based

chips, will ensure the company's growth.

"China is today 15% of our revenue. We know that in some

markets like silicon carbide, China will be the fastest growth

market. So our China penetration will increase," he said.