China devotes US$22 billion to domestic chip industry expansion

Tsinghua Unigroup has secured another 150 billion yuan in financing from Chinese state-backed groups

China is pouring more money into chasing its semiconductor ambitions. The state-backed Tsinghua Unigroup, which has been building up the country’s chip-industry infrastructure, received a 150 billion yuan (US$22 billion) in financing on Tuesday.

The funds come from the China Development Bank and a national integrated circuit investment fund, two groups tied to the country’s government.

Tsinghua Unigroup hasn’t said what the money will be specifically used for. But it will go toward making it more competitive in the semiconductor space, according to a company statement.

Tsinghua Unigroup has lately been on a spending spree. It’s investing $30 billion in a new foundry in Nanjing, China, to produce NAND flash and DRAM chips.

In addition, the company has been eyeing investment and acquisition deals with U.S. companies such as Micron Technology and Western Digital, both of which failed to pan out due to U.S. regulatory concerns.

China has been trying to wean itself off foreign chip makers, at a time when Intel and Qualcomm have been major players in the country’s market. However, these ambitions are starting to worry the U.S.

In January, a report from the outgoing Obama administration warned that China was encroaching on the U.S. semiconductor market with its state-backed policies. One concern is that Chinese subsidies will drive down chip prices, eroding U.S. market share.

For now, China’s semiconductor industry is still a generation or two behind the leading producers, according to the U.S. report. However, Tsinghua Unigroup, which is majority owned by a Chinese state company, already claims it’s emerging as a leader in mobile chip production. It owns Spreadtrum Communications, which makes smartphone processors, and RDA Microelectronics, which develops cellular technologies.

Tsinghua Unigroup said on Tuesday it's focused on making a breakthrough in China's indigenous chip technology production. The Chinese government has also said it's aiming to become a chip-making powerhouse by 2030. To do so, the country plans on spending $150 billion on its chip industry over the next decade.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?