Ex-head of state-owned chip firm busted for corruption, as anti-graft efforts intensify
Published: Mar 20, 2023 08:10 PM
chip Photo:VCG


The former chairman of leading Chinese chip producer Tsinghua Unigroup has been investigated on suspicion of duty-related crimes, China's top anti-graft watchdog said on Monday, underscoring the country's zero tolerance toward corruption.

The website of the Communist Party of China Central Commission for Discipline Inspection (CCDI) showed on Monday that Zhao Weiguo, former chairman of leading Chinese chip producer Tsinghua Unigroup, illegally transferred profitable business to his friends and relatives, purchased commodities from his friends and relatives at prices significantly higher than the market, and incited senior executives to act against the interests of listed companies, resulting in heavy losses to the state.

Zhao is suspected of corruption, making illegal profits for his friends and relatives, and damaging the interests of listed companies. The acts of Zhao are serious in nature, caused a bad influence and should be dealt with seriously, the CCDI said.

The CCDI will transfer Zhao to procuratorial departments for investigation and prosecution in accordance with the law and his illegally gained property will be confiscated, it said.

Tsinghua Unigroup is the third largest mobile phone chip designer in the world, accounting for more than 20 percent of the global SIM card chip market, news website reported.

Under Tsinghua Unigroup, there are over 200 subsidiaries running business respectively in diversified areas such as semiconductors, information and communication technologies, finance and insurance, real estate investment and development, education, according to the introduction of the group on its website.

The investigation comes as China tightened its probe into chip-focused state-owned enterprises as anti-graft efforts intensify.

Several top industry executives, including Ding Wenwu, general manager of the National Integrated Circuit Industry Investment Fund (Big Fund), have been investigated since 2022.

Ding was suspected of "serious violation of discipline and law," the CCDI said in a statement in July last year.