March 28, 2017 / 8:36 AM / 4 months ago

China's Tsinghua Unigroup signs financing deals for up to 150 bln yuan

2 Min Read

Hong Kong (Reuters) - Tsinghua Unigroup Ltd, China's top state chip manufacturer, said on Tuesday it had signed deals that would provide it financing of up to 150 billion yuan ($21.8 billion).

China Development Bank agreed to provide financing of up to 100 billion yuan for the five-year period of 2016-2020, and China's Integrated Circuit Industry Investment Fund, a 140-billion-yuan fund set up in 2014, would invest up to 50 billion yuan in the semiconductor giant, Tsinghua Unigroup said in a statement.

"The agreements... will further facilitate the consolidation of China's integrated circuit sector by joining industry and finance, and will push forward the accelerated development of the industry," the company said in the statement in Chinese language.

A spokeswoman for Tsinghua Unigroup said it did not have any immediate comment on how the funds would be used.

China is estimated to spend $150 billion over the next decade to develop its domestic semiconductor industry, according to a White House report in January.

Tsinghua Unigroup said in January it planned to build a $30 billion memory chip factory in Nanjing, after revealing plans in March last year for a separate $24 billion chip factory in the Chinese city of Wuhan.

Chinese memory chip firms are facing increasing regulatory resistance to acquiring overseas technology. In 2015, Tsinghua Unigroup tried unsuccessfully to acquire U.S. chip group Micron Technology Inc (MU.O).

Reporting By Sijia Jiang; Editing by Anne Marie Roantree and Amrutha Gayathri

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