Zhao Weiguo, the previous chairman of the Chinese semiconductor business Tsinghua Unigroupwas moved to the procuratorate for examination and prosecution on suspicion of duty-related criminal offenses, China’s leading guidance guard dog reported on March 20.
According to a declaration launched on the main site of the National Commission of Supervision, Zhao, as a supervisor of a state-owned business, misused public possessions for individual gain. He was presumably associated with illegally moving rewarding companies to buddies and family members for operation, along with acquiring products from business handled by good friends and family members at costs substantially greater than market rates. In addition, he was implicated of prompting directors of noted business to act versus the interests of the business, causing considerable losses borne by the state.
In 1988, Tsinghua University established the Tsinghua University Sci-Tech General Company, which was the university’s initially thorough school-run operation concentrated on technological accomplishments and functioned as the precursor to Tsinghua Unigroup. Today, Tsinghua Unigroup has actually become China’s biggest incorporated circuit business and the third-largest smart device chip business worldwide.
Born in 1967 in Xinjiang, a self-governing area in northwest China, Zhao registered in the Department of Electronic Engineering at Tsinghua University in 1985. After finishing in 1996, he signed up with Tsinghua Unigroup as the deputy basic supervisor of the automation engineering department. From 2002, Zhao diversified into energy and realty, developing Beijing Jiankun Investment Group in 2005. He obtained a 35.3% stake in Tsinghua Unigroup in 2010, which later on increased to 49%.
Throughout Zhao’s period, Tsinghua Unigroup broadened quickly through a series of acquisitions. Its properties reached a peak of 297.8 billion yuan ($43 billion) in 2019. At that time, Tsinghua Unigroup’s subsidiaries covered different fields, consisting of smart device chips, memory chips, chip production, product packaging, and screening.
With the fast growth, Tsinghua Unigroup dealt with financial obligation defaults. In November 2020, lenders started insolvency procedures versus the business. It is notable that Zhao emphatically opposed the reorganization strategy and questioned the prospective loss of state-owned properties. He eventually voted in favor of the strategy 4 days after revealing his issues.
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After a number of rounds of bidding, Tsinghua Unigroup revealed in April 2022 that the consortium of Wise Road Capital and JAC Capital had actually become its tactical financier, and all shares held by Jiankun Group had actually been divested. According to a report by Yicaiin action to Tsinghua Unigroup’s insolvency, Zhao Weiguo stated in April 2021, “Thank you, I do not care any longer.”
On July 11, 2022, Tsinghua Unigroup revealed that 100% of its equity had actually been moved to Beijing Zhiguangxin Holdings Co., Ltd. Li Bin, the controller of Wise Road Capital, took control of as the chairman and basic supervisor of Tsinghua Unigroup, changing Zhao.
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