State-backed computer chip manufacturer Tsinghua Unigroup Ltd. plans to invest over 300 billion yuan (USD $47 million) to become the world's third largest computer chip maker.

CRI English reports that the China-based company is currently in talks with a US-based company that could be a potential supplier for Tsinghua.

Like Us on Facebook

Chairman of Tsinghua Unigroup Zhao Weiguo states that the deal could be finalized as soon as the end of the month.

According to Channel News Asia, Zhao is very optimistic about the business move. Zhao has said that if a company is not ready to be a top three giant it will be very difficult to develop that company in the chip industry.

Zhao claims that the next five years will be key to see if the investment pays off. However, the Chinese businessman is hopeful for the future, stating that there is an enormous market in not only China, but also the world.

Currently, the third largest company in the chip building industry is Qualcomm Inc, only behind industry leaders Samsung Electronics and Intel Corp. Tsinghua is looking to change all that with bold aggressive moves.

Tsinghua Unigroup, which is controlled by the Tsinghua University, looks to be part of China's long term plans of not relying on foreign semi-conductors as the country plans to convert its military to more modern, digitized armed force.

The company has already spent more than USD $9.4 billion making acquisitions and investments over the past two years alone. These investments include the purchase of a U.S.-based data storage company called Western Digital Corp as well as Taiwan based Powertech Technology Inc.

With these moves in place, many insiders have begun to note that Tsinghua may soon be a major player in a global business.

TagsComputers, technology, Tsingua Unigroup, Tsingua Unigroup $47 Billion Computer Chip Empire