China’s government-backed Tsinghua Unigroup will invest US$46 billion in two foundries in Chengdu and Nanjing and continue its expansion and talent poaching in 2017, according to company chairman Zhao Weiguo.
Zhao said Jan. 10 that his company invested US$24 billion last year in a memory manufacturing facility in Wuhan. The construction was inaugurated in late December, 2016. He said the company will inject another US$46 billion to build the foundries in Chengdu and Nanjing in 2017. Zhao was named one of the top 10 business leaders in China.
Tsinghua Unigroup took over Wuhan Xinxin Semiconductor Manufacturing Corp and merged it into a new company called Changjiang Storage Co. The new entity in Wuhan is responsible for the development of IC industry for the Chinese government. With the US$24 billion, Changjiang Storage plans to build three of the world’s largest 3D NAND flash plants, a headquarter building and other related facilities. The construction of the factories is slated to complete in 2018, with the rest of the campus being completed in 2020. The total capacity is estimated at 300,000 chips every month.
In addition to expansion, Tsinghua Unigroup will also reportedly continue to poach talent from competitors. After Taiwan’s Inotera Memories Chairman Charles Kao jumped ship to Unigroup as global executive vice president, former UMC CEO Sun Shih-wei was also recently reported to join the Chinese company as global executive vice president to help Unigroup with its construction of the 12-inch wafer plant in Chengdu.