![TCL and Unigroup set up a M&A fund TCL and Unigroup set up a M&A fund]()
Home appliances and consumer electronics maker TCL Corporation is
setting up a 10-billion yuan fund with Tsinghua Unigroup Ltd, China's
largest chipmaker controlled by Beijing-based Tsinghua University, for
mergers and acquisitions, the two companies announced on Tuesday.
The fund will also be used for direct investment in the
chip-making industry, TMT, and the government's key economic
initiatives, including Made in China 2025 and Internet Plus.
"TCL and Tsinghua Unigroup have a profound grasp and strong
influence on each other's industry, as well as rich investment
experience in industrial upstream and downstream," said Li Dongsheng,
chairman of TCL Corp. "The establishment of the fund will promote the
future industrial upgrading and development of both parties," he added.
Li called the deal a starting point for a comprehensive cooperation between the two companies."
They are now expected to strengthen collaboration in a number of
fields, including in intelligent mobile terminal, semiconductor and
capital market.
Tsinghua Unigroup became the third-largest shareholder of TCL
when it bought 480 million TCL shares for 1 billion yuan through a
subsidiary.
In recent years, TCL has stepped up investment in upstream and downstream industries.
In 2009, it set up China Star Optoelectronics Technology in Shenzhen to make liquid crystal display panels and smart TVs.
"As a technology company, Tsinghua Unigroup is a leader in
chip and semiconductor manufacturing, while TCL serves
as a terminal electronics products provider, the two sides could
complement each other's advantages and achieve further development in
technical field though establishing the fund," said Zhao Weiguo,
chairman of Tsinghua Unigroup.
He said the fund would help cultivate the innovative ability of
Chinese technical firms in the Internet Plus and Industry 4.0 era.
In 2015, Tsinghua Unigroup announced plans to invest 300 billion
yuan over the next five years to become the world's third-largest
chipmaker.
Zhang Yanbin, assistant director of All View Cloud, a
Beijing-based consultancy specializing in home appliances, said that
"the establishment of M& A fund is beneficial for the integration of
the electronics industry and building up a complete ecosystem and
industrial chain.