Chinese conglomerate Tsinghua Unigroup plans to accelerate expansion in Southeast Asia
Chinese article by 刘昕炜
English Editor 张未名
09-07 14:34

By Kate Yuan

(JW Insights) Sept 7 -- Chinese state-owned semiconductor conglomerate Tsinghua Unigroup plans to accelerate its international expansion, with Southeast Asia being an important target region, its chairman Li Bin, said on September 6.

Tsinghua Unigroup operates three factories in Indonesia, Malaysia and Singapore, Li told a forum in Jakarta, on the sidelines of a regional summit, and it aims to expand manufacturing and R&D capabilities in Southeast Asia, according to a Reuters report.

Li also said the Tsinghua Unigroup was considering establishing an investment platform to fund projects in the region, adding that Southeast Asian investment institutions were encouraged to participate in the platform.

China is seeking to achieve self-sufficiency in semiconductor manufacturing in the face of increased sanctions from the U.S. and its allies. The Tsinghua Unigroup, which traces its roots to Tsinghua University, has played a major role in the effort, with some of its subsidiaries getting funding from the government or state-owned firms.

Over the past year, the overall revenue of Tsinghua Unigroup has increased by nearly 20%, with a significant improvement in profits. The company has turned its overall loss into profit and is in a good cash flow position. Its interest-bearing liabilities have been reduced to about one-third of the original amount, placing the company in a relatively healthy range.

It currently has branches in over 60 countries and regions worldwide, with its products and services covering more than 100 countries and regions. Its subsidiary, UNISOC, has achieved a revenue of nearly RMB14 billion($1.91 billion).

Tsinghua Unigroup has expanded rapidly over the past few years, mainly through acquisitions, and its portfolio of companies is involved across the semiconductor supply chain.

Main entities include mobile chip designer UNISOC Communications Co and Yangtze Memory Technologies, China's first and largest NAND flash memory maker, said the Reuters report.

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