Tsinghua Holdings Co. is planning to boost its spending in research on strategic technologies to 50 billion yuan (US$7.6 billion) in the next five years.
The company’s growing investments in high-tech sectors reflect China’s efforts to develop higher-value sectors as growth in traditional industries slows, according to the Wall Street Journal.
“In the future, China’s economy will need to rely on innovation,” said chairman Xu Jinghong.
Tsinghua Holdings is the state-owned investment arm of China’s elite Tsinghua University.
Recently, it made world headlines for its efforts to acquire overseas semiconductor companies.
Tsinghua Holdings executives called the 50 billion yuan spending plan a major increase in high-tech research investment for the company.
Last year, it invested 6 billion yuan in R&D across sectors, or 9 percent of its revenue, according to a spokesman said.
Tsinghua Unigroup Ltd., a unit of Tsinghua Holdings, last year tried to acquire U. chip maker Micron Technology Inc. for US$23 billion but a deal never materialized due to both companies’ expectations of regulatory hurdles, WSJ reports, citing the people familiar with the matter.
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