China marks global chip ambitions with US$13b share sale

Beijing

CHINA has taken its biggest step towards creating a national champion in global semiconductors with a planned US$13 billion private placement by an affiliate of Tsinghua Unigroup Ltd to build a chip plant and fund expansion.

Raising cash will bankroll a move into the mainstream memory market for China given that Taiwanese producers lack capital for expansion, Tsinghua Unigroup president Zhao Weiguo said in an e-mailed response to questions.

Affiliates of state-backed Tsinghua University including Unigroup are becoming the vehicle for China to wean itself off foreign semiconductor technology with an acquisition spree that includes a stake in Western Digital Corp. As the country bulks up homegrown technology, the global chip industry is undergoing a seismic shift with more than US$100 billion in deals pending or completed t…