China’s anti-fraud watchdog has accused Zhao Weiguo, chip tycoon, of corruption. This accusation is the latest sign of trouble faced by the country’s semiconductor industry. Mr Zhao is the former chairman of computer chipmaker Tsinghua Unigroup.
Tsinghua Unigroup was a branch of the prestigious Tsinghua University attended by President Xi Jinping. the state-backed company made a series of acquisitions and emerged as one of China’s leading chipmakers over the last decade. The company completed a 20-month restructuring last July, placing it under the control of a consortium led by two state-backed venture capital. Around that time, Mr Zhao stepped down as the chairman of Tsinghua Unigroup and was placed under investigation. Several other leading figures in the Chinese investigation industry have also been placed under investigation. Semiconductors are at the center of a dispute between the US and China and China has invested billions of dollars in recent years to build up its domestic chip-making capabilities.
Read more: Chinese regulator accuses chip tycoon of corruption
