Beijing-based chip giant Tsinghua Unigroup Ltd said on Tuesday it is planning to launch a 50 billion yuan ($7 billion) fund to promote cross-Straits economic ties, after its investment proposal to invest in firms in Taiwan province ran into trouble.

"Taiwan should not be afraid of the capital from the mainland. Instead, the mainland's capital, talented people and huge market can offer a big opportunity for Taiwan-based firms to grow," Zhao Weiguo, chairman of the State-owned firm, said at an economy forum in Beijing on Tuesday.

He did not offer details such as when the fund will be set up and how the capital will be used.