Commit, a Chinese TD-SCDMA chip manufacturer which may face bankruptcy because of a loss of capital, has announced plans to stop business operations and pay off the defaulted salaries and travel expenses to its employees.
The board of directors of Commit is said to have held a meeting on May 5 on which they passed the resolution to stop the company's operations. The board also held another meeting later in the day with representatives of the company's trade union, but both parties have refused to disclose the details of the meeting. According to Sohu.com, Commit has defaulted on three months' salary to more than 200 employees. Including the travel expenses it failed to pay them, the company owed up to CNY20 million to its employees.
Established in February 2002, Commit Incorporated consists of 17 industrial enterprises, including China Putian Corporation, China Academy of Telecommunications Technology, Texas Instruments (China), Nokia (China) Investment Co. Limited, LG Electronics, Inc., and Hyper Market International Limited.