Asia Express - East Asian ICT
Liteon, Tsinghua Unigroup to Set Up New SSD JV in Suzhou, China for US$100 Million
January 12, 2018

Liteon and Tsinghua Unigroup recently announced that they will invest US$100 million to create a new JV and plant for SSD (Solid State Drive) manufacturing in Suzhou, China, the China News reported on January 6.According to the agreement, Tsinghua and Liteon will invest US$55 million and US$45 million to acquire a 55% and 45% stake in the new JV, respectively. Liteon will focus on supply chain and manufacturing management while Tsinghua will concentrate on sales, product planning, and market expansion. In addition, there will be two CEOs, one from Tsinghua and another from Liteon. The construction of the new plant is set to kick off at the beginning of 2018 and complete in the last quarter before it can generate revenue in 2019. Meanwhile, Tsinghua is likely to supply DRAM (Dynamic Random Access Memory) chips produced at its Nanjing plant to the new plant, which is anticipated to produce SSDs mainly for Tsinghua's clients.