BUSINESS

China Sentences Former Chip Magnate to Death With Reprieve for Corruption

Published: May. 15, 2025 4:33 a.m. GMT+8

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The court in northern China’s Jilin province sentenced Zhao to death with a two-year reprieve

A Chinese court has handed down a suspended death sentence on Zhao Weiguo, the former chairman of once high-flying chipmaking conglomerate Tsinghua Unigroup Co. Ltd., after he was convicted of corruption and embezzlement.

Zhao, 58, came under investigation in 2022 during an anti-corruption crackdown on the country’s semiconductor industry centered on China’s biggest state-owned chip industry investment fund — the China Integrated Circuit Industry Investment Fund, or the Big Fund. He was first charged with corruption in 2023.

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Zhao Weiguo, former chairman of Tsinghua Unigroup, received a suspended death sentence for corruption and embezzling over 470 million yuan ($65.2 million) in state-owned assets from 2018–2021.
Unigroup, under Zhao, expanded rapidly in the semiconductor industry but faced a major capital crunch, defaulted on bonds, and entered bankruptcy proceedings in 2021.
Unigroup’s assets grew from 1.3 billion yuan (2009) to 297.8 billion yuan (2019), but heavy reliance on borrowing led to mounting liabilities and financial collapse.

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Who’s Who

Tsinghua Unigroup Co. Ltd.: Tsinghua Unigroup Co. Ltd., majority owned by Tsinghua University, was once a major force in China’s semiconductor industry. From 2013 to 2019, it expanded aggressively through acquisitions and partnerships with global tech firms like Intel and HP. However, it suffered from high debt and liquidity issues, defaulted on bonds, and entered bankruptcy proceedings in 2021. In 2022, the company completed bankruptcy restructuring under new ownership.

Beijing Jiankun Investment Group Co. Ltd.: Beijing Jiankun Investment Group Co. Ltd. was founded in 2005 by Zhao Weiguo. It became a major shareholder of Tsinghua Unigroup in 2010. The company is part of Zhao’s business ventures, which span sectors such as energy and real estate.

Beijing Uni Science and Technology Service Group Co. Ltd.: Beijing Uni Science and Technology Service Group Co. Ltd. is a subsidiary of Tsinghua Unigroup. Li Luyuan, a close associate of Zhao Weiguo and former chairman of this company, allegedly colluded with Zhao to illegally profit from state-owned assets and benefited through profitable business operations being funneled to his related companies, according to the court’s findings in the corruption and embezzlement case.

Intel Corp.: According to the article, Intel Corp. partnered with Tsinghua Unigroup during its aggressive expansion between 2013 and 2019. This partnership was part of Unigroup’s strategy to develop China’s domestic semiconductor industry and expand its global presence by leveraging overseas chipmaking assets.

HP Inc.: According to the article, HP Inc. was one of the companies that formed partnerships with Tsinghua Unigroup during its aggressive expansion in the integrated circuit sector between 2013 and 2019.

Spreadtrum Communications Inc.: According to the article, Spreadtrum Communications Inc. is a Chinese chipmaker that was traded in the U.S. It became one of the high-profile acquisitions made by Tsinghua Unigroup under Zhao Weiguo’s leadership as part of his strategy to leverage overseas chipmaking assets to expand Unigroup’s global reach.

H3C: H3C is a digital solutions provider that was acquired by Tsinghua Unigroup under Zhao Weiguo’s leadership. The acquisition was part of Unigroup’s series of high-profile deals aimed at expanding its reach in the integrated circuit and technology sector, alongside investments in other companies like Spreadtrum Communications and Linxens France SA.

Linxens France SA: Linxens France SA is one of the companies acquired by Tsinghua Unigroup under Zhao Weiguo’s leadership. The acquisition was part of Unigroup’s strategy to leverage overseas chipmaking assets, primarily in the U.S. and Europe, to extend its global reach in the semiconductor industry.

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