May 11, 2024

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[THE INVESTOR] Tsinghua Unigroup of China is continuing its overseas investment foray and seeking to take over South Korean fabless companies, local media outlet Chosun Biz reported Aug. 19.

The academic-industrial corporation established in 1988 with China’s top university Tsinghua as a controlling stakeholder has been on an aggressive shopping spree, gobbling up semiconductor firms around the world to realize China’s ambitions to dominate the industry. It has reportedly earmarked US$300 billion for acquisitions, mergers and capital spending this year. 

The group is preparing to take over five to six South Korean firms specializing in Internet of Things-related solutions such as power management, near-field communications and security, according to the industry.

One of the targets is power management integrated circuit specialist Silicon Meister, a 9-year-old company that leaped past 100 billion won in sales in six years. Another, MAPS, has developed wireless power charging chips that support both magnetic induction and magnetic resonance, a first in the world. There’s also Zinitix, which manufactures system integrated circuits for NFC-based payment systems, including Samsung Pay.

These fabless semiconductor companies have garnered attention from the Chinese firm mainly because they are undervalued. The fact that many are set up by former Samsung Electronics employees or have links to the South Korean tech giant also adds to the appeal.

By Hwang You-mee (glamazon@heraldcorp.com)