bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sections {
    value {
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      name
      id
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersCheckIsPostiesArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sections {
    value {
      name
      id
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sections {
    value {
      relatedNewsletters {
        ...helpersMassageToNewsletterItemNewsletter
        id
      }
      id
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on Section {
  name
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sections {
    value {
      entityId
      id
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
  ...helpersCheckIsPostiesArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesPage on Page {
  urlAlias
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_image_posties_article", "og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sections {
    value {
      name
      id
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
  ...helpersCheckIsPostiesArticle
}

fragment hooksTrackPageViewArticle on Article {
  entityId
  publishedDate
  headline
  sections {
    value {
      name
      id
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


sections

types

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

entityUuid

Reuters

Tsinghua Unigroup, a Chinese conglomerate that has long sought to become a semiconductor powerhouse, is now caught between a rock and a hard place, as debt woes mount while key chip units are failing to thrive, sources with knowledge of the matter said.
Best known for an unsuccessful US$23 billion bid for US chip maker Micron Technology in 2015, Unigroup in November shocked investors with a default on a 1.3 billion yuan (US$200 million) bond. Including that bond, Unigroup has now either defaulted or had cross-defaults triggered on seven onshore and offshore bonds worth about US$3.6 billion, according to Refinitiv data.
The state-backed conglomerate, which has warned it may not be able to make upcoming bond payments, had some US$31 billion in debt as of late June, more than half of which was due to mature in a year’s time, filings show. In contrast, it had roughly US$8 billion in cash and cash equivalents.
China’s silicon ambitions
The crisis has raised questions about Unigroup’s long-term stability and how much backing the conglomerate, which is 51 per cent owned by Tsinghua University, will continue to be given by Beijing. The central government, keen to develop a weak domestic chip industry, has invested billions of dollars in Unigroup projects as well as in other chip makers such as Semiconductor Manufacturing International Corp.
Unigroup’s efforts to raise more capital have, however, been stymied by the university’s attempts to offload its stake, in line with a change in government policy in 2018, which called for higher education institutes to divest their business holdings.
Many banks have been reluctant to lend money because Unigroup may soon be without its parent company, but at the same time, it cannot easily find a new strategic investor due to its heavy debt load, said a source with knowledge of the matter.
“And lots of the company’s subsidiaries are still not mature enough to go to capital markets, and not mature enough to generate positive cash flow,” the source said.
Some attempts to sell the university’s stake to local authorities, such as the Shenzhen government, have fallen through, according to public filings. Sources familiar with the matter said Unigroup is continuing talks with other local governments about potential investment.
Sources were not authorised to speak to media and declined to be identified. Unigroup did not respond to Reuters requests for comment.
In 2015, Unigroup chairman Zhao Weiguo declared he would spend US$47 billion in five years to turn the company, then a little-known maker of chemicals and scanners, into China’s next chip giant, primarily through acquisitions.
But three sources – all current or former senior officials within Unigroup – told Reuters that Unigroup’s chip units have not generated hoped-for revenue and its investment strategy was haphazard, with too much money going into unrelated, often unprofitable businesses ranging from real estate to online gambling and an Indian phone maker.
“A majority of the company’s investments are pretty poor, and that’s how they got themselves into this kind of trouble,” said a former Unigroup executive involved in investment.
China chip maker Tsinghua Unigroup to default on US$450 million bond, as concerns mount over debt levels on mainland
Unlisted Unigroup does not break down its revenue and profit figures in detail. According to bond analysis firm YY Ratings, chips accounted for at most 20 per cent of Unigroup’s 332 billion yuan in revenue for the first half of 2019, with 69 per cent coming from servers and other information technology equipment.
Its unit Unisoc, a maker of logic chips for mobile phones, is emblematic of the company’s problems. Formerly called Spreadtrum, it was acquired for US$1.8 billion in 2013 and its promise then was such that it attracted a US$1.5 billion investment from Intel Corp a year later.
But Unisoc struggled after losing Samsung Electronics as a client when the Korean giant reorganised its parts procurement, according to a former Unisoc executive.
As the high-end smartphone sector consolidated, Unisoc was left with mostly inexpensive, third-tier brands as customers.
Explainer: What semiconductors are and why China needs to make them itself
“If you don’t have a top tier customer like Apple, Samsung or Xiaomi, it puts a lot of pressure on the financial side,” said the former executive.
Unisoc then scrambled to diversify into the Internet of Things, automotive chips and even bitcoin mining.
Another major investment that has yet to prosper is YMTC, which Unigroup founded in 2016 with state-backed funding, marking China’s entry into the cutthroat market for NAND chips.
YMTC has since begun mass production of 64-layer NAND flash chips and recently announced it has developed 128-layer NAND flash, which technologically would bring it close to Samsung and SK Hynix.
But in an industry dominated by rivals with decades-long relationships with customers, its market share remains tiny, one of the sources said.
Gu Wenjun, an analyst at research firm ICWise, said that YMTC, despite its technological strides, is not competitive due to weak economies of scale and must improve its yields. He estimated that getting to a 20 per cent market share would require an additional US$100 billion in investment.


China’s would-be chip darling Tsinghua Unigroup bedevilled by debt and bad bets

A researcher plants a chip on an interface board at Tsinghua Unigroup’s research centre in Beijing. Photo: Reuters

Victor Zhao (or Zhao Weiguo), Chairman of Tsinghua Unigroup, makes a speech at the Big Data and Smart Technology Summit of the 2018 Smart China Expo at the Chongqing International Expo Centre in China's Chongqing city on Thursday Aug. 23, 2018. 23AUG18. SCMP/Simon Song

Tech

Big Tech

Policy

Business

China Business


Unigroup has now either defaulted or had cross-defaults triggered on seven onshore and offshore bonds worth about US$3.6 billion
The state-backed conglomerate has warned it may not be able to make upcoming bond payments



Mounting debts and poor investments have raised questions about state-backed Tsinghua Unigroup’s long-term stability in China’s semiconductor industry.


Semiconductors

China technology

Bonds

China economy

China’s would-be chip darling Tsinghua Unigroup bedevilled by debt and bad bets

Unigroup has now either defaulted or had cross-defaults triggered on seven onshore and offshore bonds worth about US$3.6 billion The state-backed conglomerate has warned it may not be able to make upcoming bond payments

Unigroup has now either defaulted or had cross-defaults triggered on seven onshore and offshore bonds worth about US$3.6 billion

The state-backed conglomerate has warned it may not be able to make upcoming bond payments