China’s heavily-indebted state-backed chip maker, Tsinghua Unigroup, has axed some of its larger memory chip projects in the cities of Chongqing and Chengdu, reports the Financial Times. The cuts come after new investors attempt to reverse the debt-stricken company’s decline after it was hampered by US restrictions on its access to key technology.
According to the FT, Nikkei Asia first reported in late 2020 that the memory chip projects in Chongqing and Chengdu had hit significant delays and were likely to be scrapped after Tsinghua Unigroup missed debt repayment deadlines. Last July, one of the company’s creditors filed a petition to begin bankruptcy proceedings for Tsinghua Unigroup due to its continued failure to resolve its debt crisis.
The group is also preparing for a major personnel reshuffle at key affiliate Unisoc, China’s second-biggest mobile chip developer, amid concerns over the nation’s lack of a “viable” 5G mobile chip player.