LONDON—Tsinghua Unigroup intends to spend 300 billion yuan (about $47 billion) over the next five years to build up China's position in the chip industry, according to the company chairman speaking in an interview given to Reuters.
But investments and company takeovers are more likely in the United States than in Taiwan, chairman Zhao Weiguo said.
Zhao also told Reuters that Tsinghua Unigroup is in talks with a major U.S. chip company and that deal could be finalized by the end of the year. No further details were given except to say that Tsinghua was unlikely to take a majority stake as it would be “too sensitive” for the U.S. government.
Tsinghua floated a $23 billion plan to acquire Micron Technology Inc. (Boise, Idaho) in July 2015 that was immediately rejected by the Micron management (see China bids $23 billion for Micron).
However, Zhao said that Tsinghua is in talks with a “world-class memory chip giant,” about a deal to bring in intellectual property needed to make NAND flash non-volatile memory chips. This would be put together with a 90 billion yuan (about $14 billion) plan to build a wafer fabrication facility in China (see Chinese oscillator maker to raise $12.5bn for memory push).
To read the rest of this article, visit EBN sister site EE Times.