China's state-owned Unigroup Guoxin has disclosed plans to invest a total of CNY19.7 billion (US$2.84 billion) in Yangtze River Storage Technology to hold a controlling 51.04% stake in the memory company.

China's National Integrated Circuit Industry Investment Fund, Hubei IC Industry Investment Fund and Hubei Science & Technology Investment Group will share the remaining 48.96% stake in Yangtze River Storage.

Unigroup Guoxin also indicated if the company steps into the development and production of memory ICs, in which Yangtze River Storage specializes, Unigroup Guoxin will implement a major restructuring by merging with Yangtze River Storage.

Unigroup Guoxin (formerly Tongfang Guoxin Electronics) is an affiliate of Tsinghua Unigroup specializing in the design and development of ICs, particularly smart card chips.