Intel commits $1.5b to Tsinghua University-funded semiconductor business

Tsinghua Unigroup is a unit of Tsinghua Holdings, an investment entity controlled by Beijing-based Tsinghua University. Both Spreadtrum and RDA develop mobile chipset platforms for smart phones, feature phones and other consumer electronics products, supporting 2G, 3G and 4G wireless standards.

As part of the agreement, Spreadtrum will develop architecture-based system-on-chips (SoCs) jointly with Intel, which will be marketed to domestic mobile phone-manufacturing customers from the second half of next year.

"China is now the largest consumption market for smartphones and has the largest number of Internet users in the world," Brian Krzanich, Intel's CEO, said in a statement. "These agreements with Tsinghua Unigroup underscore Intel's 29-year-long history of investing in and working in China."

Last year, Tsinghua Unigroup bought Spreadtrum for about $1.7 billion, taking the company private. Previous investors in Spreadtrum include New Enterprise Associates (NEA) and Silver Lake.

The Intel transaction, still subject to regulatory approval, is expected to close early next year.

Tsinghua Holdings is a state-owned company responsible for managing the majority of Tsinghua University's commercial assets. As of year-end 2012, Tsinghua Holdings had approximately RMB70.4 billion ($11.5 billion) in assets and a net income of RMB1.45 billion. Unigroup focuses on high-tech, biotech, real estate and urban infrastructure investments.

 

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• Topics
• Greater China
• Technology
• Expansion
• China
• Technology
• Growth capital