Tsinghua Unisplendour Cameras

Unigroup in reported $23b bid for Micron

Updated: 2015-07-15 11:20

The stand of Unisplendour Corp Ltd, a listed company under Tsinghua Unigroup Ltd, at an international technology expo in Beijing. Pictures and other data on cameras, smartphones and other. China’s Unisplendour Corp., a Shenzhen-listed company affiliated with the prestigious Tsinghua University, has agreed to buy a 15% stake in data storage company Western Digital Corp. Tsinghua Unigroup merged its memory chip-making operations with Chinese government-run XMC’s, creating a $2.8 billion company to spearhead the country’s effort to become a global semiconductor player. The company is folding XMC, also known as Wuhan Xinxin Semiconductor Manufacturing Corp., into its growing portfolio of assets and consolidating their production capacity, Tsinghua’s.

By Jack Freifelder in New York and Gao Yuan in Beijing(China Daily USA)


The stand of Unisplendour Corp Ltd, a listed company under Tsinghua Unigroup Ltd, at an international technology expo in Beijing. Unigroup is planning to buy US chipmaker Micron Technology Inc to lift its top-tier global ranking. Provided to China Daily

Tsinghua Unigroup Ltd, a Chinese state-backed technology conglomerate, is looking to buy US chipmaker Micron Technology Inc for $23 billion.

If approved, it would be the largest Chinese takeover of a US company to date. But many analysts believe the plan would face steep regulatory hurdles on both sides.

Tsinghua Unigroup is prepared to bid $21 per share for Micron, which closed up $2, to $19.61 on Tuesday. The offer could come as early as Wednesday, a person close to Tsinghua told Reuters.

Micron spokesman Dan Francisco e-mailed China Daily that the company 'does not comment on rumor or speculation'. Unigroup representatives declined to comment.

The Wall Street Journal first reported the story on Tuesday, citing sources.

Gene Cao, a senior analyst at consultancy Forrester Research Inc, said Unigroup would greatly benefit from the takeover.

'Unigroup is planning the acquisition because Micron will enhance its product lines of embedded chipsets and related hardware, as well as flash storage and memory computing,' Cao said.

Micron, based in Boise, Idaho, also could boost Unigroup's smart-manufacturing capability, he said, so that the Chinese company will be better positioned in the next-generation chip manufacturing and Internet of Things segments.

Vincent Gu, a Shanghai-based analyst at iSupply, told Reuters that the chances of the US government approving the deal between Micron and Tsinghua Unigroup would be 'next to zero', given the political hurdles.

'China should stay firmly grounded and persevere with researching the technology itself,' he said.

Gu Wenjun, chief analyst at iCwise, a Shanghai-based consulting company, told Bloomberg News: 'There is only a small possibility US regulators will approve this deal because it has a very strict review over offers from foreign capital, especially China.' But 'this is the right move for Tsinghua because Micron has memory chip technology, which is very hard to develop.'

Tsinghua Unigroup was founded in 1988 at China's Tsinghua University, which is the alma mater of Chinese President Xi Jinping and other senior officials.

The company became China's largest chip-design firm after it acquired two of the country's largest mobile-chip makers, Spreadtrum Communications and RDA Microelectronics, in 2013.

Micron, which was founded in 1978, has been a key player in the semiconductor industry for more than three decades.

The company makes silicon-to-semiconductor products, including both dynamic random access memory (DRAM) chips and NAND memory chips that allow storage of music, pictures and other data on cameras, smartphones and other mobiles devices. Micron also specializes in other semiconductor systems.

As the only US-based DRAM manufacturer, any foreign takeover of Micron likely would have to pass a review by the Committee on Foreign Investment in the United States.

If completed, the takeover will be the biggest in Chinese history, topping oil giant CNOOC Ltd's $15.1 billion takeover of Canadian oil and gas producer Nexen Inc in early 2013.

The deal also would further Beijing's goal of making the country more self-sufficient in technology.

Contact the writers at [email protected] and [email protected]

More China News
More World News
  • Heavy downpour hits SW China
  • Wan Li: A life in photos
  • 22 World Heritage Sites in China along the Silk Road
  • A day of masks
  • France celebrates Bastille Day
  • China's northernmost high-speed railway enters trial operation
  • Eight industries the shared economy will transform
  • Photographer in search of his 'homeland' in post-Three Gorges landscape
Editor's Picks
Seventh China-US strategic dialogue
Premier Li embarks on Latin America visit
What do we know about AIIB
Full coverage of Boao Forum for Asia
Annual legislative and political advisory sessions
Spring Festival trends reflect a changing China

China's GDP grows by 7%

Japan passes disputed bill

Petcoke called key in pollution fight

Service sector bolsters China’s GDP despite stock woes

Bush, Clinton dominate early presidential fundraising

Tiny Pluto sports big mountains, New Horizons finds

Tsinghua Unisplendour Cameras &

Greek parliament approves debt deal and first reforms

China's Internet giants reprimanded over obscene clip

Using existing venues built for Beijing Olympics

THE WEEK Oct 31: Z-Nation sins

Tsinghua Unisplendour Cameras Live

Creative colored drawings embrace New Year

Chongqing collective wedding applies for Guinness records

Airplane cleaner's day

Autumn scenery of West Lake in Hangzhou

Tsinghua Unisplendour Cameras Images

Full coverage of Boao Forum for Asia

CPC Fourth Plenary Session