According to Ziguang Group’s announcement, the company officially issued a restructuring investment agreement in December. It is expected that the Zhilu Jianguang Consortium will invest 60 billion yuan to help pay off debts. The eight-year debt-retaining plan obtains repayment. However, after the relevant proposal was released, Ziguang Chairman Zhao Weiguo issued a statement on December 15 against the reorganization plan, saying that the plan would cause the loss of more than 70 billion yuan in state-owned assets, and the real-name reporting process to the Central Commission for Discipline Inspection was illegal.
Huang Qiyuan, Taipei’s own venture capitalist and the president of Lantao Asia, told VOA that Ziguang is a school enterprise of Tsinghua University and a fully state-owned enterprise. It has a “government brand” and the face of the Chinese chip national team. Now it is heavily indebted and in the future. The reorganization process may be very cumbersome. Huang Qiyuan believes that Ziguang’s biggest failure lies in the lack of semiconductor technology and poor management. If the Beijing government continues to provide policy funding support, there may be some vitality in the future.
However, experts such as Lin Zongnan, a professor of electrical engineering at National Taiwan University, believe that Ziguang has already lost the competition with the world‘s leading chip manufacturers, and it is difficult to make a breakthrough in the future. Lin Zongnan pointed out that Ziguang will not fall, but it can only continue to linger, and in the face of international siege in the field of technology, it is difficult for Chinese companies to easily obtain technological dividends from Western countries as before. Therefore, companies like Ziguang are going downhill.
Li Zhongxian, a professor of electrical engineering at Tainan Chenggong University, told VOA that Ziguang’s bankruptcy shows that the CCP government does not accumulate scientific and technological strength in the semiconductor field. The strategy of only taking shortcuts and overtaking corners is a failure. Basically, it proved to be a failure. If there is no way to overcome this, just spend more money, I am afraid the benefits will be limited.”
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