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Published on : Nov 19, 2015

Tsinghua Unigroup Ltd in China is in the endeavor to emerge as the world’s third-biggest chipmaker and has planned to invest an amount of 47 bn US$ in five years’ time for meeting the never-ending chip demands in China. China has been importing chips from other countries rather than taking from any other resource. It solely relies on Qualcomm for the supply of chips that need to be integrated within its in-house made devices. Tsinghua has decided to rely on these foreign companies and has taken over the responsibility to supply these chips to all other Chinese organizations. They do not intend to target just China and rather want to extend this trend to other foreign countries as well.

At present, Qualcomm, Intel, and Samsung dominate the top-most three positions within the semiconductor companies globally. Tsinghua is investing to take the lead position and this is why is ready for such a huge investment. This company already holds the intentions on buying Micron, the memory manufacturer in the U.S. along with Mediatek. On the other hand, the U.S. and Taiwanese governments have declared these acquisitions to be invalid in order to save their local manufacturers. The leading five chipmakers hold over 90% in the market for NAND chips.  In this market, small players couldn’t beat the competition and thus held a very small share in the market for NAND chips.

Tsinghua Unigroup Ltd has expended over $9.4 bn US$ in acquisitions and in investments in abroad and home in the past 2 years. This includes the stakes’ purchases in the company named Powertech Technology of Japan and data storage company of the U.S., named Western Digital. China has so far managed to establish a number of manufacturing plants and has decreased its reliance on foreign organizations. Seeing Tsinghua manufacture its own chips, the vision of China is poised to become stronger and this will prove to be a huge success for the country.