For China’s chip companies with money in hand, acquiring foreign chip firms has always been a shortcut to obtaining talent and technology. However, acquisitions are facing more resistance overseas, as deals to buy NWF and Magnachip are likely to be blocked. 

Around 86% of the 57 semiconductor merger and acquisition (M&A) deals by Chinese firms between 2015 and 2019 targeted foreign firms, making the country the primary buyer of international chip companies, according to Deloitte China. Now, Western countries are increasing scrutiny of those deals.

Two blocked acquisitions: On July 7, British Prime Minister Boris Johnson said his government will review an offer by Nexperia, a Dutch firm wholly owned by China’s Wingtech, to buy the UK’s largest chipmaker, Newport Wafer Fab (NWF).

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Wei Sheng

Wei Sheng is a Beijing-based reporter covering hardware, smartphone, and telecommunications, along with regulations and policies related to the China tech scene. He writes a monthly newsletter tracking...