Tsinghua Unigroup Ltd, the State-backed Chinese firm that recently agreed to buy a $3.8 billion stake in Western Digital Corp, is close to acquiring Tongfang Guoxin Electronics Co, a person familiar with the matter said.

Tsinghua Unigroup Chairman Zhao Weiguo said in an interview on Sunday that he was closing in on an acquisition of a chip company he founded and served as its first general manager, though he declined to name the target. Tongfang Guoxin, which makes oscillators and resonators that go into electronic products, fits that description.

The companies also have ties. Tongfang Guoxin's biggest shareholder is Tsinghua Tongfang Co, an affiliate of closely held Tsinghua Unigroup.

Representatives at Tongfang Guoxin, Tsinghua Tongfang and Tsinghua Unigroup either did not respond to queries or declined to comment.

Meanwhile, Tsinghua Unigroup has hired industry veteran Charles Kau to lead its memory business.

Kau is joining Unigroup after stepping down last week as president of Nanya Technology Corp. He will remain chairman of Inotera Technologies Inc, a venture between Nanya and Micron Technology Inc.

Hiring Kau, with decades of chip industry experience, is another step in the company's expansion into the $80 billion global memory market.

The 62-year-old will help Unigroup build its semiconductor capabilities as China gradually weans itself off foreign technology. Kau declined to comment when contacted on Monday.

Kau co-founded memory chipmaker Macronix International Co in 1989 before joining Nanya and later becoming president, the position he quit last week. He