Tsinghua Unigroup

History

2021: Sale of chip manufacturers to pay debts of $30.8 billion

In July 2021, Tsinghua Unigroup, which bought up chipmakers, announced that it had received a notice from a Beijing court that Huishang Bank (a major lender to the Chinese state corporation), had demanded to initiate bankruptcy proceedings against the debtor company. According to the Reuters news agency, Tsinghua Unigroup is owed about $31 billion and $8 billion in cash and cash equivalents.

Two subsidiaries registered in the city of Shenzheng - a supplier of technology solutions in the field of information technology infrastructure, Unisplendour Corp, and integrated circuit developer, Unigroup Guoxin Micro, announced last week that the composition of their owners could change after as a state-owned bank, Huishang Bank, a creditor to Tsinghua Unigroup, asked a Beijing court to initiate bankruptcy proceedings against Tsinghua Unigroup.

Chinese state corporation Tsinghua Unigroup, which bought up chipmakers, is now selling them to pay debts of $30.8 billion

According to Reuters, published last week, the company is trying to sell its stake in Unisplendour in the amount of 46.45% to potential investors, including Alibaba Group Holding and several state-supported companies.

The debt violated Tsinghua Unigroup's plans to increase microarray production capacity. Two large projects being implemented in China under the leadership of the company - a large 3D NAND flash drive plant in Chengdu with a total investment of about a billion (about $31 billion) and a memory chip plant in Chongqing - faced significant supply delays and it is possible that production on them will be curtailed.

Tsinghua Unigroup plays an important role in the implementation of the Chinese government's industrial strategy "Made in China 2025" to create an independent semiconductor industry. The company controls some of the most successful Chinese high-tech companies it has been able to acquire for several years.^[1]

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