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Memory/Storage??

Oscillator company to raise $12.5B for memory wafer fab

Posted: 11 Nov 2015 ?? ?Print Version ?Bookmark and Share

Keywords:Tsinghua Unigroup? memory? Tongfang Guoxin? NAND flash? wafer fab?

A state-controlled conglomerate in China is planning to invest roughly $12.5 billion in a memory chip factory. Related acquisitions by Tsinghua Unigroup Ltd is expected to be done through an affiliated company, Tongfang Guoxin Electronics Co. Ltd, reports indicated.

Tongfang Guoxin is a manufacturer of piezoelectric quartz crystal components that is traded on the Shenzhen stock exchange. The company has said it will raise about $12.5 billion mainly provided by Tsinghua Unigroup affiliated companies in a stock exchange regulatory filing, the reports said. This would be the biggest-ever private placement of stock by a company in mainland China, they added.

The amount Tongfang Guoxin is looking to raise is more than four times the company's market value in October, according to a Digitimes report. The same report said that about $9.4 billion would be used to finance the construction of a memory wafer fab and nearly $600 million would be used to purchase a 25 per cent stake in packaging and test services company Powertech Technology. The remaining $2.55 billion would be used for other acquisitions, the report quoted Tongfang Guoxin as saying.

A Nikkei Asian Review article said the total cost of the wafer fab would be nearly $14.65 billion. The fab is likely to be focused on the production of non-volatile memory such as NAND flash.

Tsinghua Unigroup, an offshoot of Tsinghua University, is one of the levers being used by the Chinese government to build up the country's position in the semiconductor industry by way of a series of mergers and acquisitions.

In July Tsinghua Unigroup floated the idea of a $23 billion bid for US memory chip company Micron Technology Inc. And in October it was announced that Chinese state-controlled Unisplendor Corp. would take a 15 per cent stake in disk drive company Western Digital, which in turn is buying flash memory chip company SanDisk Corp.

- Peter Clarke
??EE Times Europe





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