The flop of Tsinghua’s $23 billion USD bid for memory chip maker Micron clearly hasn’t dulled their appetite for U.S. hardware makers.
Unisplendour Corp., a branch of Tsinghua Unigroup group, has inked a deal with U.S.-based hard drive company Western Digital, agreeing to hand over $3.8 billion in return for a 15% percent stake, reports Bloomberg.
The purchase is still currently pending approval, though it would mean the Chinese company could be the largest shareholder of Western Digital. They will also have the option to appoint a board member to the U.S. company.
It’s the latest in a series of high-tech purchases from state-backed apparatuses as China seeks to build its own technology ecosystem.
Last week Microsoft announced its Chinese cloud computing partner 21Vianet Group had entered a joint venture with Tsinghua to market cloud services to state-owned enterprises.
The same arm of Tsingua paid out $2.3 billion USD in may this year for a 51% stake in Hewlett-Packard’s chia data business, giving them a controlling stake. They also forged a partnership with Intel, who have taken a 20% stake in Tsinghua and are now chip developing technology together.
Tsinghua Ungroup will purchase the 15% stake in Western Digital by buying newly issued shares at a price of $92.50 each. The U.S. company’s stock jumped 15% following the news, marking their biggest hike in almost three years.