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Qualcomm intends to apply to the Ministry of Commerce today to China NXP acquisitions

via:新浪科技     time:2018/4/16 18:41:51     readed:52

In the semiconductor field, NXP Semiconductors is one of the world's largest manufacturers. The acquisition of NXP is important to Qualcomm, which is seeking to diversify its user base and is increasingly becoming a leading chip supplier in the fast-growing automotive market.

The U.S. chip maker has received approval from eight of the nine regulatory agencies worldwide to finalize the acquisition. The Chinese regulator is the only one that has not yet given approval. By re-applying, Qualcomm will probably provide the Ministry of Commerce with another six-month window to evaluate its application. This will be Qualcomm's second filing of its anti-monopoly application with the Ministry of Commerce.

However, analysts believe that before the Sino-US trade and investment tensions are resolved, the Chinese Ministry of Commerce is unlikely to approve the deal.

Earlier this month, the Trump administration proposed to impose nearly $50 billion in tariffs on some 1300 industrial, technical, transportation, and medical products to force Beijing to change its intellectual property policy.

The Beijing side immediately counterattacked a tariff of US$50 billion on key US imports.

He added that as an American company, Qualcomm just hit his head. "Qualcomm's position is very embarrassing: From the perspective of national security, from the perspective of competition and China's industry policy - in short, all the influencing factors in the trade warfare are accounted for by Qualcomm."

Qualcomm declined to comment. The Chinese Ministry of Commerce did not respond immediately.

In the recent rounds of discussions, antitrust issues have been referred to many times. However, sources said that Qualcomm is actually unfounded and has nothing to do with the transaction.

Qualcomm is clear that it needs to submit a series of guarantees to the Ministry of Commerce to ensure that NXP customers do not have to purchase Qualcomm's licenses.

Qualcomm announced its intention to acquire Dutch Semiconductor in October 2016 and announced in February that it would increase the bid price to US$127.50 per share, making NXP’s valuation worth US$44 billion.

A few weeks later, on the grounds of national security, Trump ordered his competitor Broadcom to suspend the acquisition of Qualcomm’s US$117 billion. Qualcomm’s stock price has fallen by nearly 13% since the beginning of the year, and NXP’s share price has fallen by about 3% over the same period.

related articles:

China Postpones Review of Qualcomm's $44 Billion Acquisition of NXP Transaction

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