Report: China has $47bn chip fund focused on US M&A

Report: China has $47bn chip fund focused on US M&A

Business news |
By eeNews Europe

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).

Tsinghua Unigroup does not have any plans for DRAM manufacturing at present the report quoted Zhao as saying.

Taiwanese regulations prohibit Chinese investment in chip "design" firms although they allow investment in other parts of the ecosystem.

Zhao told Reuters that until the regulations change there’s no point in talking to Taiwanese companies and that Tsinghua Unigroup is focused on investing in the United States. 

Related links and articles:

Reuters report

News articles:

China bids $23 billion for Micron

Chinese oscillator maker to raise $12.5bn for memory push

China to take 25% stake in Taiwan’s Powertech

China’s Tsinghua interested in MediaTek

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