Latest news with #ZhaoWeiguo
Epoch Times
19-05-2025
- Business
- Epoch Times
High-Profile Chinese Semiconductor Executive Gets Death Sentence for Corruption
On May 14, a Chinese court handed a suspended death sentence to the former chairman of state-owned chip conglomerate Tsinghua Unigroup. Zhao Weiguo, who headed what was once China's biggest semiconductor company, was found guilty of embezzling state-owned assets, accepting bribes, and causing massive losses both for publicly traded companies and directly to the Chinese regime. His two-year reprieve is good news for the formerly high-flying chip executive, as such reprieves usually result in life imprisonment. Zhao was placed under official investigation in 2022 and formally charged with graft in 2023. According to the verdict, Zhao conspired with an accomplice between 2018 and 2021 to illegally seize more than 470 million yuan (about $65 million) in state-owned assets while serving as chairman of Tsinghua Unigroup. Between 2014 and 2021, he allegedly transferred profitable business operations to related parties, causing losses for a publicly listed company and direct economic losses to the Chinese regime of more than 890 million yuan (about $125 million). In another scheme, Zhao allegedly instructed directors at a publicly listed company under his control in 2019 to lease a corporate project at prices well below market value to a firm operated by his accomplice. This resulted in additional losses of more than 46 million yuan (about $6.4 million) for the listed company. Related Stories 5/15/2025 5/15/2025 Zhao was once hailed in China's chip industry as a 'chip maniac' for his bold ambitions. Fueled by China's push for chip self-reliance, Tsinghua Unigroup rose to prominence through aggressive acquisitions. During Zhao's tenure, the group's assets grew from 1.3 billion yuan (about $180 million) to nearly 298 billion yuan (about $41.4 billion), with key subsidiaries gaining prominence in cutting-edge sectors including cloud, chips, and memory. But the group's rapid expansion failed to deliver meaningful operational growth, leaving the company mired in debt and ultimately forced into bankruptcy restructuring in 2021. Zhao's actions were described as having caused 'particularly serious losses to state interests.' In addition to his death sentence, he was stripped of his political rights for life, ordered to forfeit all his personal assets, and fined 12 million yuan (about $1.65 million). The court cited Zhao's full confession, cooperation with investigators, voluntary return of illicit gains, and the recovery of all embezzled assets as grounds for suspending the death sentence. The news of Zhao's sentencing resonated in Taiwan's chip industry, where memories linger of his aggressive push to acquire influence over leading Taiwanese semiconductor firms. During a 2015 visit to Taiwan, Zhao publicly proposed acquiring a 25 percent stake in Taiwan Semiconductor Manufacturing Company to gain a controlling interest. He also advocated for a merger between MediaTek and Tsinghua Unigroup's chip design businesses and urged Taiwan to lift investment restrictions on Chinese firms in the semiconductor sector. Then-Taiwanese President Ma Ying-jeou's administration showed interest in allowing Chinese investment—including from Tsinghua Unigroup—into Taiwan's integrated circuit design industry as a means of enhancing competitiveness. But the proposal faced strong resistance from the public, academia, and industry groups. After Tsai Ing-wen became president in 2016, her government formally barred Chinese capital from entering Taiwan's integrated circuit sector, a policy that remains unchanged today.
AsiaOne
15-05-2025
- Business
- AsiaOne
China hands Tsinghua Unigroup's former chairman suspended death sentence over corruption, China News
BEIJING — A Chinese court handed Zhao Weiguo, the former chairman of semiconductor firm Tsinghua Unigroup, a suspended death sentence on Wednesday (May 14) after he was found guilty of corruption and embezzlement, state broadcaster CCTV reported on Wednesday. The court in northeastern Jilin province sentenced Zhao to death with a two-year reprieve, the report said, meaning the sentence will only be carried out if he commits further crimes during the period. After the two years, he will face a life sentence. The court also fined Zhao a total of 12 million yuan (S$2.16 million) for illegally earning profits for his family and friends as well as damaging the interest of a listed company. Reuters was not able to contact Zhao for comment. He was first charged for corruption in 2023. Originating as a branch of China's prestigious Tsinghua University, state-backed Tsinghua Unigroup was established in 1988 as a would-be domestic champion for China's laggard chip industry. But under Zhao, the company spent billions on chip-related acquisitions but also unrelated, unprofitable businesses ranging from real estate to online gambling that eventually led it to default on a number of bond payments in late 2020 and face bankruptcy. In 2022, Tsinghua Unigroup completed a restructuring plan that placed it under the ownership of a vehicle controlled by Wise Road Capital, Jianguang Asset Management, and a number of state-affiliated funds. [[nid:713269]]
Time of India
14-05-2025
- Business
- Time of India
China hands suspended death sentence to ex-chief of state chip giant
Beijing: China on Wednesday handed a suspended death sentence to the former head of a major state-owned maker of high-end semiconductors, state media reported. Zhao Weiguo , the former chairman of semiconductor titan Tsinghua Unigroup , came under official investigation in 2022 and was formally accused of graft the following year. China has sought to increase its self-reliance in the field of semiconductors, which are used in everything from televisions to weapons and supercomputers, particularly as they have become a focus of trade tensions between Beijing and countries like the United States. Tsinghua Unigroup rose to become one of the country's leading chipmakers after a string of acquisitions, but accumulated huge debts under Zhao's chairmanship. It defaulted on several bond payments in 2020, sparking a painful restructuring and a change in ownership. On Wednesday, a court in northeastern China found Zhao guilty of massive embezzlement, illegal profiteering and intentionally harming the interests of a listed company, according to state broadcaster CCTV. He was given a death sentence with a two-year suspension, deprived of political rights for life and ordered to forfeit his personal assets. In China, death sentences for corruption-related crimes are often reduced to life imprisonment on appeal. He was also fined 12 million yuan ($1.65 million). Zhao, who is in his late 50s, graduated from Beijing's prestigious Tsinghua University and started working in 1993 at Tsinghua Unigroup, which has historic ties to the school, according to an official Chinese biography. He rose through the ranks and served as the company's chairman from 2009 until the time of his investigation. The court found that Zhao and an accomplice had used his position to buy property that should have been owned by the company at cut-rate prices, illegally occupying state-owned assets worth 470 million yuan, CCTV reported. He also cost the state over 890 million yuan when he bought services from his accomplice's company at a rate much higher than the market value, it said. "(Zhao) embezzled a particularly huge sum of money and caused particularly serious losses to national interests, and should be sentenced to death," the court concluded. But "the execution will not be immediately carried out" because he cooperated with prosecutors and returned his ill-gotten gains, it said. Chinese President Xi Jinping has waged an unrelenting crackdown on official corruption since coming to power over a decade ago. Proponents say the policy promotes clean governance, but others say it also serves as a means for Xi to purge political rivals.
Nikkei Asia
14-05-2025
- Nikkei Asia
Tsinghua Unigroup ex-chairman gets suspended death sentence over corruption
BEIJING (Reuters) -- A Chinese court handed Zhao Weiguo, the former chairman of semiconductor firm Tsinghua Unigroup, a suspended death sentence on Wednesday after he was found guilty of corruption and embezzlement, state broadcaster CCTV reported on Wednesday. The court in northeastern Jilin province sentenced Zhao to death with a two-year reprieve, the report said, meaning the sentence will only be carried out if he commits further crimes during the period. After the two years, he will face a life sentence.
NDTV
14-05-2025
- Business
- NDTV
Ex-Chief Of Chinese Chip Giant Gets Suspended Death Sentence For Corruption
China: China on Wednesday handed a suspended death sentence to the former head of a major state-owned maker of high-end semiconductors, state media reported. Zhao Weiguo, the former chairman of semiconductor titan Tsinghua Unigroup, came under official investigation in 2022 and was formally accused of graft the following year. China has sought to increase its self-reliance in the field of semiconductors, which are used in everything from televisions to weapons and supercomputers, particularly as they have become a focus of trade tensions between Beijing and countries like the United States. Tsinghua Unigroup rose to become one of the country's leading chipmakers after a string of acquisitions, but accumulated huge debts under Zhao's chairmanship. It defaulted on several bond payments in 2020, sparking a painful restructuring and a change in ownership. On Wednesday, a court in northeastern China found Zhao guilty of massive embezzlement, illegal profiteering and intentionally harming the interests of a listed company, according to state broadcaster CCTV. He was given a death sentence with a two-year suspension, deprived of political rights for life and ordered to forfeit his personal assets. In China, death sentences for corruption-related crimes are often reduced to life imprisonment on appeal. He was also fined 12 million yuan ($1.65 million). Zhao, who is in his late 50s, graduated from Beijing's prestigious Tsinghua University and started working in 1993 at Tsinghua Unigroup, which has historic ties to the school, according to an official Chinese biography. He rose through the ranks and served as the company's chairman from 2009 until the time of his investigation. The court found that Zhao and an accomplice had used his position to buy property that should have been owned by the company at cut-rate prices, illegally occupying state-owned assets worth 470 million yuan, CCTV reported. He also cost the state over 890 million yuan when he bought services from his accomplice's company at a rate much higher than the market value, it said. "(Zhao) embezzled a particularly huge sum of money and caused particularly serious losses to national interests, and should be sentenced to death," the court concluded. But "the execution will not be immediately carried out" because he cooperated with prosecutors and returned his ill-gotten gains, it said. Chinese President Xi Jinping has waged an unrelenting crackdown on official corruption since coming to power over a decade ago. Proponents say the policy promotes clean governance, but others say it also serves as a means for Xi to purge political rivals.
