Air conditioner maker Gree Electric to setup new chip firm

Tinuku - Gree Electric to set up new firm for chip development. A Chinese major appliance manufacturer famous for air-conditioners has taken the initiative to set up a new company. Assurances aside, investors are concerned that the company's move into the chip field may affect future dividends.

According to the National Enterprise Credit Information Publicity System, Zhuhai Zero Border Integrated Circuit Co. Ltd. was established with a registered capital of 1 billion yuan (US$150 million). The legal representative is Dong Mingzhu of the chairman of Gree Electric.

Tinuku Air conditioner maker Gree Electric to setup new chip firm

The company’s business scope covers the design and sales of semiconductors, integrated circuits, chips, electronic components and electronic products. While the only shareholder is Gree Electric. Earlier in June, Dong said that the company will strive to use its own chips for Gree air conditioners next year.

However, investors are worried that Gree Electric’s move into the chip field may affect dividends. Dong clearly stated that the dividends won’t be affected and it is a must to develop their own chips.

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