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Creation of China chip supply chain key for Tsinghua Unigroup revival

Embattled Chinese chipmaker to build synergies with newly related companies

BEIJING -- China's onetime chipmaking champion Tsinghua Unigroup begins a new life under the wings of two investment funds seeking to rescue the financially strapped company -- a task that depends on having its group companies forge their own supply chains with chip firms linked to the funds.

This restructuring holds the key to whether Chinese President Xi Jinping's goal of creating a national chip industry can be attained. And the standoff between China and the U.S. over semiconductors will be an obstacle.

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