China: multibillion-dollar bankruptcy of a semiconductor company reveals the fragility of the economic system, and why Taiwan is important
Tsinghua Unigroup, a leading Chinese semiconductor company with debt of over 100 billion Yuan, 14.5 billion Euros, has already filed for bankruptcy , but has received a capital injection of 9.8 billion RMB from FII, a subsidiary of Taiwan's largest electronics industry group, Hon Hai, to be able to restructure. An unexpected thing, given the current tension between the Republic of China and the People's Republic of China. The analysis highlighted that Hon Hai's move focuses on the potential of the Chinese electric vehicle market and is set to strengthen the supply of key semiconductor components and this market cannot be ignored for commercial interests.
Chinese semiconductor company Tsinghua Unigroup filed for bankruptcy and reorganization in July last year. The company was born from an initiative of Fii, a company that together with Zhilu capital had created Tsinghua, of which they owned 85%. Now Hon Hai will own approximately 85% of FII which will recapitalize the subsidiary. With this purchase, the Taiwanese company is now entering the booming Chinese e-mobility sector, which cannot be ignored given its size.
Tsinghua is owned by the Zinguang Gruop, which is considered the beloved leader of the Chinese semiconductor government. It was precisely the excessive push for expansion by the government that was at the root of the crack, linked to excessive indebtedness combined with unrealizable growth projects. China wants industry leadership even when it doesn't make economic sense, and these are the results.
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The article China: multi-billion dollar bankruptcy of a semiconductor company reveals the fragility of the economic system, and why Taiwan is important comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cina-fallimento-multimiliardario-di-una-societa-di-semiconduttori-rivela-la-fragilita-del-sistema-economico-e-perche-taiwan-sia-importante/ on Thu, 14 Jul 2022 21:36:44 +0000.