Vanguard Group Inc, the US asset-management giant, is to shutter its remaining business in China after a retreat two years ago, people familiar with the matter said, abandoning a 27 trillion yuan (US$3.9 trillion) fund market that global competitors are embracing.
The Malvern, Pennsylvania-based firm has notified the Chinese government of intentions to shutter its unit in Shanghai, the people said, requesting not to be named because the matter is private.
The company also is planning to exit a robo-advisory joint venture with Jack Ma (馬雲)-backed Ant Group Co (螞蟻集團), the people said.
Photo: Reuters
The moves would mark a complete exit from China for the US$7.1 trillion giant, which once saw significant potential in the world’s second-largest economy.
The reversal stands as a cautionary tale for global peers including BlackRock Inc and Fidelity International Ltd, which are still racing to build up local operations as the nation’s recovery and a new pension reform brighten prospects.
Vanguard said that its Shanghai unit and the joint venture are operating normally.
Ant and representatives of the joint venture said the same.
All three declined to comment further.
The Chinese Securities Regulatory Commission did not immediately reply to a request seeking comment.
Caixin reported Vanguard’s plans earlier.
A complete retreat would follow Vanguard’s surprise move two years ago to scrap plans for a mutual-fund management license in China.
Fidelity and Neuberger Berman Group have recently joined Blackrock in launching onshore funds through new wholly owned units, while Manulife Financial Corp, JPMorgan Chase & Co and Morgan Stanley have gained approvals to buy out local partners to gain full control of existing ventures.
The race for fund advisory is heating up with more players coming in, hurting profitability. Vanguard’s venture, which has been offering only products from competitors, booked a loss in 2021 that was much higher than an internal forecast made after it was set up in 2019. Vanguard owns 49 percent of it.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS