Tsinghua Unigroup gets $22 billion funding for chips business
Tsinghua Unigroup, a subsidiary of Tsinghua Holdings, signed agreements with two Chinese State-controlled financial institutions on March 28 that will secure the company 150 billion yuan ($22 billion) of funding to invest in its integrated circuit business.
The China Development Bank, a policy bank run directly by China's State Council, plans to provide Tsinghua Unigroup with a range of financial support and services worth 100 billion yuan over the course of the Thirteenth Five-Year Plan period (2016-2020), according to the agreement.
Sino IC Capital, an organization set up by the Chinese government in 2014 to manage the country's chip industry investment fund, the China Integrated Circuit Industry Investment Fund, has also pledged to provide Tsinghua Unigroup with 50 billion yuan in funding.
Tsinghua Unigroup signs agreements with China Development Bank and Sino IC Capital Co., Ltd. on Mar 28.
Tsinghua Unigroup will use the huge injection of funding to enhance its core competitiveness in the integrated circuit industry.
Xu Ming (front, left), president of China Development Bank Beijing Branch, and Zhao Weiguo, chairman of Tsinghua Unigroup, sign an agreement on Mar 28.
China has identified integrated circuits as a key strategic industry, and the country has announced its ambition to become the world's leading chip maker by 2030.
Lu Jun (front, left), president of Sino IC Capital, and Zhang Yadong, president of Tsinghua Unigroup, sign an agreement on Mar 28.
Tsinghua Unigroup has been pursuing this goal through investing in independent innovation and international cooperation in recent years. The company is now among the top three mobile communications chip manufacturers worldwide. In February, it started construction on a $30 billion semiconductor industrial base in Nanjing.
Zheng Zhijie, president of China Development Bank, Liu Lihua, the deputy head of China's Ministry of Industry and Information Technology, Lu Jun, president of China Integrated Circuit Industry Investment Fund, and Xu Jinghong, chairman of Tsinghua Holdings, attended the signing ceremony for the deals.