GUOXIN MICRO selling UGC for 220 million yuan while there is a huge pressure of R&D in domestic DRAM flash memory
Three masters of global DRAM is Samsung, SK Hynix and Micron. Though China has increased investment in memory and flash memory this years, research and development on technology as well as production capacity still takes long time to progress. Xi’an UnilC belongs to GUOXIN MICRO, having R&D capacity of memories including DDR2, DDR3 and DDR4 rather than production ability in momory. Besides, it’s constant investment in R&D capacity of DRAM can’t make money with no volume production, which increasing the operating pressure. So GUOXIN MICRO decides to sell it to UNIS storage in Beijing for 220 billion yuan.
As the following affair involving many companies the situation needs to be clarified firstly. The predecessor of Xi’an UniIC is Xi’an Sinochip Semiconductors Co., Ltd., which is based on development of Qimonda Technologies (Xi'an) Co., Ltd. since May in 2009. This company established as the storage division of German Infineon Technologies in Xi’an in 2003. By spilting from Infineon Technologies and becoming Qimonda Technologies (Xi'an) Co., Ltd., it operated as an independent company in 2006. Inspur bought it in 2009, then reformed and rebuilt it after renaming Xi’an Sinochip Semiconductors Co., Ltd. to Qimonda Technologies (Xi'an) Co., Ltd. the same year. UGC of Tsinghua Unigroup bought it and renamed it to Xi’an Sinochip Semiconductors Co., Ltd. in 2015.
Xi’an Sinochip Semiconductors Co., Ltd. is the predecessor of GUOXIN MICRO, and it’s renamed in May this year. Tsinghua Unigroup, Chongqing Government and National Integrated Circuit Industry Fund launched Unisplendour Guoxin Co., Ltd. with 100 billion yuan registered capital, and which may seeking IPO. Due to occupying of UGC, Xi’an Sinochip Semiconductors Co., Ltd. is renamed to Unigroup Guoxin Microelectronics Co., Ltd., GUOXIN MICRO for short.
Acrroding to China Securities Journal, Xi’an Sinochip Semiconductors Co., Ltd. Accounted 343 million yuan of revenue and 12.0023 million yuan of deficit in 2017. 327 million yuan of revenue and 5.8523 million yuan of deficit was accouted in the first seven months of this year. Total assets of Xi’an Sinochip Semiconductors Co., Ltd. Is 279 million yuan and net asset is 27.5560 million yuan up to July 31th, 2018. GUOXIN MICRO offers a loan of 195 million yuan to Xi’an Sinochip Semiconductors Co., Ltd. at present, in addition, it has 10 million yuan of industry development funds by joint liability guarantee.
As a matter of fact, GUOXIN MICRO’s wholly owned subsidiary is Xi’an Sinochip Semiconductors Co., Ltd., the subject of R&D DRAM. GUOXIN MICRO is listed company and has other businesses besides Xi’an Sinochip Semiconductors Co., Ltd.. The smart security chip business is the most profitable, while Xi’an Sinochip Semiconductors Co., Ltd. can’t makes money with R&D ability but production capacity. Thus, GUOXIN MICRO decides to strip asset of storage chips.
The buyer is no one else but UNIS storage, the subsidiary of Tsinghua Unigroup too, whose businesses involving secure storage, cluster storage, server, AIO, and so on.
Storage is one area of key layout, but Tsinghua Unigroup mainly focuses on YMTC now, whose main product is 3D NAND flash memory, and DRAM isn’t its emphasis. There are top 3 in domestic storage chip layout, Hefei Changxin integrated circuit Co., Ltd., GigaDevice and Fujian Jin Hua, the last two of them is mainly produce momory, including desktop DDR and Mobile DDR SDRAM.