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Unigroup $2 5B default another setback to China s chip plans

News Analysis Robert Clark 12/11/2020 China is tipping billions into the chip sector, yet one of its most important semiconductor companies has just defaulted – for the second time in a month. Tsinghua Unigroup, majority owned by the prestigious Tsinghua University, is set to miss payments on nearly $2.5 billion of international bonds, WSJ.com has reported. This follows its default on a domestic bond worth 1.3 billion yuan (US$199 million) last month, one of a series of missed repayments that have unsettled China bond markets this year. Analysts and investors interpret the Unigroup default as primarily a signal that the government won t be propping up unviable state enterprises.

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