Report: Tsinghua Unigroup to bid $23 billion for Micron

China's Tsinghua Unigroup, Ltd. may be preparing a $23 billion offer to buy out memory maker Micron Technologies. According to a report by Bloomberg, the buyout offer has already received approval from Chinese authorities, but would still be subject to regulatory approval in the US. If approved, the deal would give China control of the fifth-largest chipmaker in the world by revenue.

When contacted for comment, Tsinghua Unigroup Chairman Zhao Weiguo told Bloomberg that the company is "very interested in cooperation with Micron." A Micron spokesman told Bloomberg that it has not received an offer, and it does not comment on rumor or speculation.

The buyout attempt would come at a low point for Micron: Bloomberg notes the company's stock price is down 50% this year after it reported its first revenue decline in over two years. 

Ben Funk

Sega nerd and guitar lover

Comments closed
    • BlackDove
    • 5 years ago

    Well if that happens Micron will be another company ill avoid and tell everyone else to avoid.

    • albundy
    • 5 years ago

    isnt their stock market collapsing as we speak? Micron should only accept an all cash deal. if Unigroups stock drops like a rock, they might not have the equity to pay them. i’d be very wary now from any china offer considering the volatility.

    • ronch
    • 5 years ago

    Micron, how about just merging with me? We can call the new venture MicRonch.

      • HisDivineOrder
      • 5 years ago

      If you merged with your new company with McDonalds, you could be McRonchalds.

        • derFunkenstein
        • 5 years ago

        He should consider salad dressing. Hidden Valley Ronch.

          • HisDivineOrder
          • 5 years ago

          Hidden Valley Ronch is like crack. I heard a comedian the other day say that it took him 20 years of life before he realized that broccoli wasn’t a spoon for Hidden Valley. Truth, there.

    • Milo Burke
    • 5 years ago

    US should deny approval simply because Micron is easier to pronounce than Tsinghua. If they get a name-change, then we can talk.

      • HisDivineOrder
      • 5 years ago

      What if they change their name from Tsinghua to “Cahoneys”? As in, “We got you by the cahoneys, Micron.”

        • Srsly_Bro
        • 5 years ago

        1/10

    • kuttan
    • 5 years ago

    More and more chinese buy out is not a good thing. Don’t know why but my intuition tells so.

      • HisDivineOrder
      • 5 years ago

      More and more chinese take out is not a bad thing. Don’t know why but my intuition tells so.

    • meteore
    • 5 years ago

    Never in history have US regulators approved sells of high-tech companies with similar scales and technology complexity to the Chinese. I don’t see it happening this time either. Just Tsinghua Unigroup and Micron trying to jack up their stock prices

      • HisDivineOrder
      • 5 years ago

      Never in history have US regulators had their personal information in the hands of the Chinese government in such record numbers. You don’t think the Chinese compiled a database of government employees for nothing, right? I’m sure they’re getting discrete phone calls referring to incidents that they’d rather people not become aware of. Suggestions that greasing the wheels of this little merger might keep those details off the public radar.

      “It’ll just be this one time. We only need this one little thing,” they’ll promise.

        • meteore
        • 5 years ago

        I am not sure the Chinese can work effectively with the phone numbers even if they have it. It will take years to figure out.

        But I do doubt US politics works the way you described. Even if the Chinese call, they probably will call their multinational corporation friends to work things out in the congress. Given how American companies are screwed in China recently, I can say that the Chinese-government-American-corporation friendship is not at its good time.

          • HisDivineOrder
          • 5 years ago

          It’s not company to company. It’s company to individual. You think the personal information they got from the one breach is the only info they have. I wouldn’t think that. It’s one of the few we’ve caught.

          It’s not inconceivable their database “of the willing or easily compelled” is not going to be built on just that one breach, but many. Look at all the little breaches all over the country that our government is attributing to the Chinese. Let’s say half of them are really Chinese and not our government being paranoid.

          That’s a lot of information being lifted by the Chinese digitally. Toss in some good ol’ fashioned spycraft that isn’t digital/hacking theft.

          It’s not the company talking to another company. It’s the Chinese government telling one guy somewhere who’s making a pittance that he can either have his entire life ruined or he can make a little extra money on the side.

          It’s not the President that’s getting the call. It’s the guy preparing to spray the pesticides on the vegetables he’ll wind up eating.

    • NTMBK
    • 5 years ago

    This is painful to watch. The Chinese government- and don’t kid yourself, they are the ones holding the purse strings here- have the long term strategic thinking needed to keep making investment in high-tech R&D. They are buying up IP and manufacturing know-how whenever they can, building up their portfolio and quietly becoming more and more competent. Meanwhile the west are selling off the crown jewels for short term profits.

      • NeelyCam
      • 5 years ago

      [quote<]Meanwhile the west are selling off the crown jewels for short term profits.[/quote<] If by "west" you mean greedy profit-seeking companies/shareholders, then yes. If by "west" you mean "western nations"... well, they have nothing to do with it - nations don't [i<]own[/i<] those jewels.

      • blastdoor
      • 5 years ago

      Maybe, maybe not.

      Back in the late 80s, early 90s there were some people in the US freaking out that Japanese companies were taking over American TV companies, stealing the “crown jewels” of LCD and HDTV. You can see how warranted those fears were when you look at the awesome power of Sony and Sharp today.

        • cynan
        • 5 years ago

        The irony of that comment is that it is largely the Korean TV companies that are leading the TV (and increasingly, consumer electronic) markets. Samsung, then LG.

        Sony, while still a large player in the TV market, is not doing nearly as well as Samsung or LG. Outside of, perhaps, some of its photography equipment, I don’t think Sony’s consumer electronics division is doing too well right now overall. Panasonic (ie, Matsushita), not too long ago a leader in the market, has all but given up, and other than a few models, are now largely releasing re-branded (or the next thing to it – as in little to no Panasonic R&D) Chinese LCD sets.

        Other once potentially formidable Japanese TV makers? With the possible exception of Sharp, Toshiba and Mitsubishi have been relegated to a whole different league. And Sharp has its work cut out if it wants to reclaim any sort of sizable market share (despite the fact that it was an industry leader when LCD TVs were starting to become all the rage).

        The second, smaller irony is that Vizio’s market share – an American TV company – is steadily increasing.

        The country with the real future for growth in market share, and not just for TVs, is of course China. Companies like Hisense and others will continue to get better, offering more and more competitive products at prices countries with higher overall standards of living can’t afford to provide.

      • TopHatKiller
      • 5 years ago

      I don’t think there is too much to worry about, actually. The US will almost certainly block this.

      • chuckula
      • 5 years ago

      China isn’t all roses either. Any country where they line up firing squads to scare off the short sellers after $6 Trillion evaporates from their stock market has its own issues.

        • Meadows
        • 5 years ago

        Money doesn’t “evaporate”. Perceived value does, which is what trading is about.

          • HisDivineOrder
          • 5 years ago

          Using appropriate amounts of heat, water, and imagination, I think you can create a scenario where money does indeed seem to evaporate.

            • Terra_Nocuus
            • 5 years ago

            Dude, where’s my coins? #saweeeeet #duuuuude

          • Srsly_Bro
          • 5 years ago

          you knew what he meant….

        • HisDivineOrder
        • 5 years ago

        I’ve heard from the Chinese government that in fact China is a country of nothing but sweet smelling roses across fields after fields of people dancing and prancing amongst the butterflies and carefully trained bees that will not sting people no matter how badly they mash them. There is no smog, there is no suffering, there are no suicides from sweatshops, and in fact everyone is happy with everything.

        Unless you have some evidence that is greater than the WORD of the Chinese government upon whose honor they have staked their word, I daresay you, sir, are guilty of slander.

        A Chinese operative will be coming to your door with a black bag and a notepad to take down all your grievances. I’m sure he’ll take care of everything.

        • anotherengineer
        • 5 years ago

        Well trying to avoid a total and utter collapse like happened here in 2008 isn’t necessarily a bad thing.

        • Platedslicer
        • 5 years ago

        Western governments aren’t too kind to short sellers either, when push comes to shove.

        Everybody likes to pretend their asset prices are going up forever, and when reality intrudes, they blame “irrationality”, call for trading freezes, bans on short selling, bailouts etc.

        It’s always comforting to shoot the messenger. The Chinese just happen to take it literally.

      • jjj
      • 5 years ago

      There is a fundamental flaw in western economics and education where folks always aim for high margins over hard work.
      That’s why all the display makers are in Asia, RAM and NAND are shifting to Asia just like PC makers and phone makers did.
      The West wants to rip it’s customer off , to sell on marketing and make a lot of money without even trying while our govs and regulators are too corrupted to do anything besides enabling them.
      When a business is low margins western companies just drop it and long term that kind of culture will end badly. This is just screwed up Japan, they copied the West too much and lost their advantage.

      • HisDivineOrder
      • 5 years ago

      This is why the Chinese will be controlling the destiny of humanity in the long term future. Don’t worry. They’re too smart to make any huge changes. They just want control. They’re fine letting others THINK they’re running things as long as they know who really is running things.

      The best way to conquer an enemy is to give him everything he thinks he wants and use it to convince him to submit to you.

      • UnfriendlyFire
      • 5 years ago

      The shareholders will have their returns on investments. Always.

      (And if they don’t… Well, stock prices go down, senior management’s wealth decrease because they have holdings of their own company’s stocks, and there’s always the option of forcing non-cooperative management out)

      • A_Pickle
      • 5 years ago

      The businesses of the West might not sell off their crown jewels for short-term profits if not for the governments of the West regulating the bejeezus out of them.

      • kamikaziechameleon
      • 5 years ago

      Here is the thing, it’s the creativity that counts. China is following in the footsteps of Japan’s, copy america, thinking.

      Long as you can’t foster creativity doesn’t matter how much you buy its the creation that is the most valuable and profitable.

      Not saying selling isn’t stupid but the Chinese aren’t about to catch up, like japan didn’t. We are forfeiting our lead but not dropping out of the race, instead of finishing 2 laps ahead we’ll be just out in front. Western thinking is generally superior because it empowers an individual, that is what makes creativity. Inversely asian hive minds are good at copying but not great at creating.

      Ironically the country on that continent best poised to conquer this is India, they are aiming at fostering a healthy democracy with a healthy free market and empowered individuals. They are just fighting class warfare at the moment as they are going through the transition culturally.

    • jjj
    • 5 years ago

    It’s not at all a low point for Micron, the low point was before 2013 when the DRAM market was complicated.
    The years ahead could be tricky for a couple of reasons.
    China is determined to get into the NAND and RAM market and one way or another they are likely to do so soon. Once that starts, pricing will get much worse, just like they are doing in displays now – the Chinese display makers are building capacity at an insane rate ( just y-day BOE announced an agreement to build a 10.5G plant with 90k sheets monthly capacity- that’s like 8.6million 55 inch panels per year at 80% yields) and some Taiwan and Japan display makers are about to get into trouble.
    Another tricky issue is the transition to HBM./HMC/Wide-IO , to 3D NAND and then 3D RRAM and w/e other new tech might make it. Some big names could stumble.

    For us it would be good if China buys it, cheaper NAND and especially DRAM would be great.

    EDIT: The amount of xenopfobia from some Americans here is shocking and shameful. Wonder if they hate gays and blacks as much as they seem to hate China( or anything that’s not American). Seems that it’s more a lack of education than decency so at least it’s easier to fix.
    Anyway, you should have provided some more context about Tsinghua Unigroup, they own RDA and Spreadtrum and ,here comes the funny part, INTEL owns 20% of Tsinghua Unigroup.
    For the hell of it , here a graph with DRAM and NAND market share in 2014 [url<]http://press.trendforce.com/data/attachment/2015/07/15/656440001436942612.png[/url<]

      • Mentawl
      • 5 years ago

      Quality over price for me please. 🙁

        • A_Pickle
        • 5 years ago

        China makes good quality products. You probably used some of them typing that post.

          • anotherengineer
          • 5 years ago

          Automotive windshields aren’t one of them.

          They spontaneously crack up here in the winter. Never had that issue with my old 76 chev Scottsdale.

          • BlackDove
          • 5 years ago

          Lol thats hilarious.

      • fhohj
      • 5 years ago

      it would make DDR4 a lot cheaper a lot quicker.

      • BlackDove
      • 5 years ago

      China making and selling cheap shit to the west is one of the reasons that the west is collapsing.

        • meteore
        • 5 years ago

        The question is that who are importing the cheap **** from China over the quality products made by Americans? Our stupid corporations and shareholders they are serving.

          • NeelyCam
          • 5 years ago

          The real question is why, and the answer is because of cheap Americans unwilling to pay the more for an item made by Americans over a cheaper item made in China.

            • mordax
            • 5 years ago

            Most things, there’s no real choice.

            That said, “Cheap” is a curious term — all things being equal, why would you spend more of your finite dollars on a more expensive product? Especially given most people have no clue where the item was made.

    • ronch
    • 5 years ago

    Don’t do it, Micron. Don’t sell off your tech to other nations like AMD, IBM, and some other tech companies do.

      • maxxcool
      • 5 years ago

      I think they will do it to get away from the horrible dram market.

      • PrincipalSkinner
      • 5 years ago

      Whereas it’s perfectly fine to buy resources from those other nations.

        • just brew it!
        • 5 years ago

        At least that way we’re not giving away our IP. The sale of Bell Labs to Alcatel really stung; they were one of the crown jewels of US innovation and invention (transistor, laser, C programming language, and many others). Every time we sell out a piece of our tech industry to a foreign buyer in the name of shareholder profits, it erodes our long-term competitiveness.

          • ronch
          • 5 years ago

          Yupyup.

          • PrincipalSkinner
          • 5 years ago

          It’s called globalization. Free market cuts both ways. China is on the rise and some people don’t like it.

            • NeelyCam
            • 5 years ago

            Yupyup.

            • ronch
            • 5 years ago

            OK, pay up.

            • NeelyCam
            • 5 years ago

            How much?

            • ronch
            • 5 years ago

            $5 bajillion.

            • Kougar
            • 5 years ago

            Except trade secrets seem to only cut one way, and that’s toward China.

            You also don’t see the US government taking company IP and reverse-engineering microchips in order to build its own CPUs, SoCs, and other tech to then sell within the US via federally owned companies.

            • ronch
            • 5 years ago

            Globalization doesn’t matter to someone who lives in a country that sold off all its crown jewels and has long since slid down the pecking order.

            • Ninjitsu
            • 5 years ago

            Globalization is only good if it benefits the USA, remember. 😉

            • NovusBogus
            • 5 years ago

            But it isn’t really a free market–Western companies are hamstrung by regulation, labor laws, environmental/pollution stuff, etc. and their Asian counterparts aren’t. Basically, they have to choose to either outsource/sell out or be driven out of business in a lopsided retail fight.

            • helix
            • 5 years ago

            Reintroducing slavery in the west is not the right solution to the problem. So please don’t characterize the problem as western companies being “hamstrung” by decency and sanity. Rather talk about the absurdity of how Chinese companies prey unrestrained on their workforce.
            The right way to deal with this is to raise human rights and workers’ rights in China.

          • NeelyCam
          • 5 years ago

          The thing is, it’s not “your” IP. It’s the company’s IP, and companies have no loyalty to anyone except shareholders. Money is king.

          Until people stop complaining about governmental steering of high-tech companies as “socialism”, this trend will continue.

            • anotherengineer
            • 5 years ago

            True enough, to a certain extent. Ontario hydro is a govmint run corporation, but they plan on selling it off to the private sector and they will do whatever, probably jack up hydro x2 to over 35 cents/kw.hr.

            I think big decisions regarding public companies paid for by the public, like this should go to the people for a vote, isn’t that what a democracy is supposed to be??

            • A_Pickle
            • 5 years ago

            [quote<]Until people stop complaining about governmental steering of high-tech companies as "socialism", this trend will continue.[/quote<] Fortunately, jingoistic nationalism remains in the dustbin of history, where it belongs. Looking forward to some nice, cheap, Chinese SSD's! Assuming the socialists in D.C. allow globalization to work (lol).

            • anotherengineer
            • 5 years ago

            Most of the NAND on SSD is already fabbed in China. Once they buy out everything (except Samsung – who they will probably collude with) I don’t thin you will see ‘cheap’ SSDs, but I could be wrong. I wonder how the warranties will be??

          • cynan
          • 5 years ago

          Is that worse than running the company into the ground and then having it die a slow and painful death over the past decade and a half as did the analogous Canadian company (cough**Nortel**cough). What is left of the remaining husk is still being divided up in bankruptcy court, with vultures swooping in to try and gain bargain access to the remaining patent portfolio (ie, Google offering 900 mill in 2011).

          Canada learned a valuable lesson from Nortel. Now any time successfull Canadian companies get an even remotely enticing offer, it’s been sell! sell! sell! ever since. ATi was only a snowflake on the tip of the iceberg.

      • raddude9
      • 5 years ago

      But then other countries might retaliate and do things like prevent microsoft from buying Nokia….. too late…. way too late

      • A_Pickle
      • 5 years ago

      Why not?

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