China to pour $47 billion into chip industry

Picture courtesy of Wikimedia CommonsTsinghua Unigroup, a conglomerate backed by the Chinese government, is to plunge $47 billion into the semiconductor business in the next five years.

That’s according to Reuters, which interviewed Tsinghua chairman Zhao Weiguo, who said China wants to become the third biggest semiconductor manufacturer in the world.

Intel, Samsung and Qualcomm hold the first three positions in semiconductor companies worldwide, but that could change because of the amount of money Tsinghua will throw into the chip pot.

Tsinghua has already said it has eyes on buying Mediatek and wanted to buy US memory manufacturer Micron. But moves like these are currently blocked by the Taiwanese and US governments respectively, which want to protect local manufacturers. Micron ruled out being bought  by Tsinghua.

But Tsinghua already has shares in US company Western Digital and Taiwan’s Powertech.