China tycoon sees bubble in chip industry

Beijing

ZHAO Weiguo, who became a billionaire buying semiconductor companies, says the industry has entered a "serious bubble" in China after valuations surged.

Many of the nation's chipmakers are too expensive given "fierce" competition, Mr Zhao, the chairman of Tsinghua Unigroup, said in a May 30 interview in Beijing. The investment arm of China's Tsinghua University, which has announced US$4.7 billion of acquisitions in the past two years, isn't planning more deals in the integrated circuit industry, he said.