A billion-dollar Chinese plan to invest in Western Digital Corp is designed to plug the U.S. data storage firm into a network of influential China tech players carefully constructed by Tsinghua University, the alma mater of President Xi Jinping. For $3.8 billion, a unit of state-owned Tsinghua Holdings Co will get a 15 percent stake in Western Digital. What Tsinghua, run by a university committee, hopes to get is the latest in a string of domestic and foreign footholds in data storage and the chip market, an area deemed of strategic importance by Beijing.Wednesday's Western Digital deal follows Tsinghua's $23 billion move to purchase U.S. chipmaker Micron Technology Inc as China ramps up efforts to develop chips expertise. But the Micron plan has been clouded by U.S. security concerns - and some say the Western Digital may follow suit."Its (Tsinghua's) Chinese government affiliation is making its overseas acquisition more difficult," said Fubon Securities analyst Carlos Peng.
Micron Technology, Inc. is a global provider of semiconductor devices. Shares of MU traded higher by 4.17% or $0.6/share to $14.98. In the past year, the shares have traded as low as $13.50 and as high as $36.59. On average, 32869800 shares of MU exchange hands on a given day and today's volume is recorded at 28066304.
Western Digital Corporation, is a data storage solutions company. Shares of WDC traded higher by 14.52% or $10.07/share to $79.44. In the past year, the shares have traded as low as $67.87 and as high as $114.69. On average, 2839780 shares of WDC exchange hands on a given day and today's volume is recorded at 11691978.