Tsinghua Unigroup restructuring receives go-ahead from court

A plan to restructure Tsinghua Unigroup, once China’s national champion in semiconductor manufacturing, under two state-owned investment funds has been given the green light by a Beijing court.

The deal will be finalized after an antitrust and national security review by the Chinese government.

The proposal covers Unigroup and six subsidiaries. A majority of these companies will come under a business formed by Beijing Jianguang Asset Management and Wise Road Capital.

Yangtze Memory Technologies, a company backed by Unigroup that pursued cutting-edge memory chips, will be taken over by Hubei Science & Technology Investment Group, part of the group involved in the restructuring deal, according to local media.

Tsinghua Unigroup is 51%-owned by Tsinghua University, the prestigious alma mater of President Xi Jinping. Through repeated acquisitions and investments, it grew to become a major Chinese semiconductor supplier along with Yangtze Memory. But its debt burdens forced it to default on bond payments several times.