State-backed Tsinghua Tongfang plans to sell stake in local chip firm

Tsinghua Tongfang Co, the State-backed firm, announced on Wednesday it is planning to sell its stake in the local chip company Tongfang Guoxin Electronics Co.

The Beijing-based company said it plans to sell the share to Tsinghua Unigroup Ltd, without disclosing more details.

Both Tsinghua Tongfang and Tsinghua Unigroup are the units of Tsinghua Holdings Ltd, a technology conglomerate backed by Tsinghua University.

The move is part of broad efforts by Tsinghua Holdings to restructure its sprawling business and concentrate its chip-making operations to the unit Tsinghua Unigroup.

Earlier, Tsinghua Unigroup bought a $3.8 billion stake in Western Digital Corp, an American computer data storage company.