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China’s Chip Ambitions Fade as Chip Giant Faces Bankruptcy

Tsinghua Unigroup, a Chinese state-backed chip maker, said it received court notice that one of its creditors had initiated bankruptcy proceedings for the group, dated July 12. Tsinghua Unigroup is a commercial arm of China’s Tsinghua University and an integral part of Chinese Leader Xi Jinping’s semiconductor self-reliance dream. One of its creditors had requested the court to initiate bankruptcy and reorganization proceedings due to Tsinghua Unigroup’s failure to repay debts and its glaring insolvency. The company is a key member of China’s microchip national team. According to a Unigroup filing to the Shanghai Stock Exchange, the creditor who requested the court proceedings was Huishang Bank Corporation Limited, a Hong Kong-listed bank based in Anhui, China. On Nov. 16, 2020, Tsinghua Unigroup defaulted on $198 million in bonds, resulting in a credit downgrade. And at least six more of its bonds had defaulted by June of this year, the group …

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