Former chairman of Tsinghua Unigroup to be charged
Zhao Weiguo, the former chairman of Chinese semiconductor company Tsinghua Unigroup, has been handed over to China’s legal system and faces charges of corruption.
Zhao has been transferred to the procuratorate for investigation and prosecution on suspicion of duty-related crimes, according to the state-controlled China Daily, which referenced the official website of the CPC Central Commission for Discipline Inspection and the National Supervisory Commission as its source.
He is one of a group of executives that came under investigation in July 2022 at various venture capital firms, the China Integrated Circuit Industry Investment Fund – otherwise known as the Big Fund, and at Tsinghua Unigroup. Other individuals were added to the probe during the year.
Among those under investigation are Diao Shijing, former co-president Tsinghua Unigroup, and Li Luyuan, chairman of a Tsinghua Unigroup subsidiary; former Big Fund chief executive Ding Wenwu; Lu Jun, Gao Songtao, Du Yang, Ren Kai and Yang Zhengfan all from Sino IC Capital Co. Ltd.; Wang Wenzhong partner in Shenzhen Hongtai fund and Chen Datong of a Suzhou-bed investment fund.
Holding company
Tsinghua Unigroup was the holding company set up to absorb two of China’s more successful startups Spreadtrum Communications an RDA Microelectronics, which became Unisoc. But Tsingua Unigroup was also used to channel state funds to manufacturing companies such as Yangtze Memory Technology Co. (YMTC) and other much less successful enterprises.
Problems gathered for the fund in its second investment phase of about 200 billion yuan (about US$28.5 billion), for which Sino IC Capital was appointed the sole fund manager. The company became burdened with debt and had to be bailed out through an acquisition by Beijing Zhiguangxin Holding in July 2022.
With the introduction of tightening export controls by the United States China’s politicians faced with the realization that despite the disbursement of approaching US$100 billion through multiple funds China is still a several generations of technology behind the leading-edge in IC production and dependent on US-controlled technology.
Related links and articles:
Ministry official to lead China’s troubled ‘Big Fund’
Another China ‘Big Fund’ executive is detained
Foxconn to sell stake in Tsinghua Unigroup, faces fine
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