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Chinese do not have enough money for memory production: Tsinghua Unigroup will have to sell stake in Unisoc
eleven.02.2021 [12:40],
Gennady Detinich

By the end of last year, it turned out that the Chinese holding Tsinghua Unigroup could not pay off the interest on borrowed funds. This immediately jeopardized China’s nascent NAND and DRAM industries. As one of the measures to pay off debts, the holding is considering the possibility of selling part of the shares of its most “gold-bearing” subsidiary, Unisoc, which develops SoC for smartphones and not only.

Image source: Nikkei

According to the Japanese news agency Nikkei, Tsinghua has already agreed with the authorities on the sale of part of Unisoc shares. Moreover, last year, following debt restructuring, Tsinghua reduced its stake in Unisoc from 57.1% to 38.5%. This time, if the rumors are confirmed, Tsinghua will reduce the stake in this subsidiary to about 25%, which implies the sale of another 10% of Unisoc shares.

Other major shareholders in Unisoc are China’s Big Fund, which is the main source of funding for the semiconductor industry in the country (owning 15.27% of Unisoc), Shanghai IC Industry Investment Fund (owning 4.09% of shares) and Intel (in In 2021, she invested $ 1.5 billion to acquire a 20% stake in Unisoc, but today she owns a 12.98% stake).

Officially, Tsinghua and Unisoc declined to comment on the above information. At the same time, sources claim that Unisoc is hatching plans to distance itself from Tsinghua and create an image of an independent SoC developer for the mobile market. Today, Unisoc owns 4% of the mobile SoC market, and lags far behind the leaders – Qualcomm and MediaTek. But at the same time, it is gradually expanding its market share, and greater independence can benefit it.

As for Tsinghua Unigroup, the loss of a significant part of Unisoc shares is the loss of reliable assets, but if it is necessary to pay the debts, Tsinghua may have no other choice.

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