Chinese technology conglomerate TsinghuaUnigroup Ltd plans to invest 80 billion yuan ($12.6 billion) in building a new memory chip factory and making acquisitions, channelling the funds into a private placement by an affiliate announced late on Thursday.
Tongfang Guoxin Electronics Co said in a stock exchange statement that it would raise the funds in placement mostly funded by Tsinghua Unigroup and a firm controlled by the latter’s chairman, Zhao Weiguo. Unlisted Tsinghua Unigroup bought 36 percent of Tongfang earlier this week.
Tsinghua Unigroup, controlled by Tsinghua University in Beijing which counts President Xi Jinping among its alumni, has spearheaded a global deal-making drive over the past year as China steps up efforts to build its own chip industry.
About 60 billion yuan will be used to build a new memory chip factory, while 16.2 billion yuan will be spent on upstream and downstream acquisitions in the chip industry. The remaining 3.79 billion yuan will fund the purchase of a stake in Taiwan’s Powertech Technology, announced last week.
In September the firm announced plans to buy a 15 percent stake in U.S. data storage company Western Digital Corp, a deal that could draw regulatory scrutiny amid increased U.S. national security concerns.
In August, it made an informal $23 billion takeover offer for Micron Technology that was rejected out-of-hand by the Idaho-based chipmaker’ s leadership.
(Editing by Kenneth Maxwell)
This article was first published on reuters.com