State-owned Tsinghua Unigroup continues investing in overseas companies in a bid to strengthen its presence in the semiconductor industry. (Photo : www.tech01.us)
Aiming to be the world's third biggest chipmaker, China's Tsinghua Unigroup Ltd. eyes to invest at least 300 billion yuan for the next five years, according to the technology conglomerate's chairman.
Chairman Zhao Weiguo also revealed that the state-backed group is in talks with a U.S.-based firm involved in the chip industry, adding that a deal could be finalized as early as the end of November.
"If you can't be the top-three giant, it will be very hard to develop your business in the chip industry," Zhao said. "The next five years is key. . . . There is an enormous market out there."
Currently, Intel Corp., Samsung Electronics Co. Ltd. and Qualcomm Inc. dominate the world market.
The investment drive of the group, which is controlled by the Tsinghua University, comes after it embarked on a two-year deal-making advocacy to boost the country's chip industry.
For the recent period, Chinese capital Beijing has been keen on ending the reliance of China to foreign semiconductors. Amid fear of cyberspying, it has also turned its attention to the development of local semiconductor as well as server and network equipment industries.
Over the past two years, Tsinghua Unigroup has shelled out over $9.4 billion for investments and acquisitions at home and abroad.
Back in August, the group made an informal takeover offer to U.S. giant Micron Technology Inc. The deal valued at $23 billion was declined by the Idaho-based chipmaker.
Last year, the technology powerhouse racked up a revenue amounting to 12.3 billion yuan.
