China’s Tsinghua Unigroup to invest $12b on memory chip factory

Tsinghua Unigroup Website

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)

Also read: 

Tsinghua deal to connect Western Digital to powerful China tech set

China’s Tsinghua to buy Western Digital stake in US tech push

China’s Tsinghua Unigroup buying 25% in Taiwan chip firm Powertech in $600m deal

This article was first published on reuters.com

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.