Ts­inghua Un­i­group plans $7b cross-Straits fund

China Daily (Hong Kong) - - BUSINESS - By MA SI masi@chi­nadaily.com.cn

Bei­jing-based chip gi­ant Ts­inghua Un­i­group Ltd said on Tues­day it is planning to launch a 50 bil­lion yuan ($7 bil­lion) fund to pro­mote cross-Straits eco­nomic ties, af­ter its in­vest­ment pro­posal to in­vest in firms in Tai­wan prov­ince ran into trou­ble.

“Tai­wan should not be afraid of the cap­i­tal from the main­land. In­stead, the main­land’s cap­i­tal, tal­ented peo­ple and huge mar­ket can of­fer a big op­por­tu­nity for Tai­wan­based firms to grow,” Zhao Weiguo, chair­man of the State-owned firm, said at an econ­omy fo­rum in Bei­jing on Tues­day.

He did not of­fer de­tails such as when the fund will be set up and how the cap­i­tal will be used.

The speech came af­ter the firm’s pro­pos­als to buy stakes worth nearly $1 bil­lion in two chip firms in Tai­wan prov­ince ran into trou­ble.

A source close to Zhao told China Daily that “the firm’s ac­qui­si­tion plan in Tai­wan is not go­ing well be­cause the Tai­wan lo­cal gov­ern­ment is de­lay­ing the ap­proval process.”

ChipMOS Tech­nolo­gies Inc, a Tai­wan-based chip test and pack­ag­ing firm, said in late Novem­ber that it would end the part­ner­ship with Ts­inghua Un­i­group, which said last year it would spend $365 mil­lion to buy 25 per­cent of the Tai­wan firm’s shares.

“Some Tai­wan of­fi­cials are see­ing main­land cap­i­tal as a threat­en­ing mon­ster. If they don’t wel­come our in­vest­ment, we can at­tract Tai­wan firms to the main­land for co­op­er­a­tion,” Zhao said at the fo­rum.

Ts­inghua Un­i­group also said last year it was in­vest­ing around $600 mil­lion in Pow­ertech Tech­nol­ogy Inc for a 25 per­cent stake. Cur­rently, the deal is still wait­ing ap­proval from the Tai­wan lo­cal gov­ern­ment.

Tsai Ing-wen, the Tai­wan leader in­au­gu­rated in May, had ear­lier claimed the in­vest­ments by Ts­inghua Un­i­group were a “huge threat” to Tai­wan.

Roger Sheng, a se­nior an­a­lyst at re­search firm Gart­ner Inc, said Tai­wan en­ter­prises are in fact very ea­ger to co­op­er­ate with main­land firms be­cause they are short of money and want to tap into the main­land’s huge mar­ket.

“Many Tai­wan chip ex­perts have al­ready come to the main­land,” he added.

... the main­land’s cap­i­tal, tal­ented peo­ple and huge mar­ket can of­fer a big op­por­tu­nity for Tai­wan-based firms to grow.” Zhao Weiguo, chair­man of Ts­inghua Un­i­group Ltd

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.