By Greg Gao

Chinese tech conglomerate Tsinghua Unigroup(紫光) kicked off on January 29 the construction of its ICT equipment intelligent manufacturing base project in Chenglingji New Port Area of south-central China’s Hunan Province, JW Insights reported.

With a total investment of RMB5 billion($740.5 million), the project will mass-produce servers and switch products for Tsinghua Unigroup. Its annual capacity is expected to be 200,000 units of equipment, with a total value of RMB10 billion($1.48 billion).

The company said the project will also help it realize its development strategy of “from chip to cloud.”

For Chenglingji New Port Area, the Tsinghua Unigroup project will help it to build an RMB100 billion($14.8 billion) electronic information industry cluster, commented a local official.

Tsinghua Unigroup, affiliated with the prestigious Tsinghua University, sank to bankruptcy in July 2021 after years of debt-driven acquisitions in the semiconductor industry. It completed a debt restructuring and ownership change by a consortium of Wise Road and JAC Capital in July 2022.