SAN FRANCISCO—China's Tsinghua Unigroup Ltd. announced it secured deals that would provide it with an additional 150 billion yuan (about $21.8 billion) in financing from two government-backed sources.
The China Development Bank pledged 100 billion yuan (about $14.5 billion) in financing while China's Integrated Circuit Investment Fund will invest up to 50 billion yuan (about $7.3 billion) in China's largest semiconductor company, according to a statement posted by Tsinghua in late March.
Tsinghua said the financing was provided to the company for upgrades and to enhance its core competitiveness.
Tsinghua has in recent months pledged to invest $54 billion to build two huge memory chip fabs in China.
The Chinese government announced last year its intention to invest some $161 billion over the next 10 years to bolster its domestic semiconductor industry.
Tsinghua said the financing would help improve its global competitiveness and the rise of the IC industry in China.
The rise of China's semiconductor ambitions has led to conflict with the U.S., which has begun to more aggressively oppose the takeover of U.S. and other Western tech firms by Chinese entities. A report released by the White House in January describes government support of Chinese chip companies such as Tsinghua as among Chinese policies that artificially distort markets in favor of Chinese firms.
—Dylan McGrath covers the semiconductor industry and business news for EE Times.