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Taiwan chip firm Powertech signs deal with China's Tsinghua Unigroup

Taiwan chip firm Powertech signs deal with China's Tsinghua Unigroup

Taipei, Oct. 30 (CNA) Taiwan's Powertech Technology Inc.(??, PTI) on Friday announced its agreement to sell a 25 percent stake to China's Tsinghua Unigroup (??), marking the first time that a Chinese company will be investing in Taiwan's chip testing and packaging industry, if the deal is approved. The alliance will be reviewed by the Industrial Development Bureau (???) later, said the Ministry of Economic Affairs. Tsinghua Unigroup, a business arm of China's famed Tsinghua University, acquired the stake in PTI for NT$19.4 billion (US$600 million). The deal will make Tsinghua Unigroup the largest shareholder of PTI, and the Beijing-based company will have the right to pick one officer for the PTI board. Powertech Chairman Tsai Du-kung (???) said the company plans to use the funds from the private placement to expand its capacity of advanced assembly and testing services in northern Taiwan's Hsinchu County and to help PTI beef up its operations in Singapore and China. The state-backed Chinese firm Tsinghua has been strengthening its presence in the global semiconductor industry. Earlier this month, Tsinghua Unigroup announced its plans to acquire a 15 percent stake in U.S. hard-disk drive manufacturer Western Digital for US$3.77 billion. (By Chung Jun-fung and Lee Mei-yu)


Updated : 2021-09-21 04:19 GMT+08:00