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Bloomberg
A US chipmaker’s attempt to acquire a peer with a valuable Chinese affiliate has spurred concern in Beijing, as tensions between the world’s two biggest economies threaten to disrupt the global tech supply chain.
China’s antitrust regulator is closely monitoring Diodes Inc’s proposed $428 million takeover of Taiwan’s Lite-On Semiconductor Corp, responding to complaints a deal
will deliver the Taiwanese company’s Shanghai-based affiliate On-Bright Electronics Inc into American hands, according to a person familiar with the matter.
The State Administration for Market Regulation is heeding warnings from multiple industry organisations about the acquisition and could consider asking the Chinese assets to be excluded from the deal, said the person, asking not to be identified talking about sensitive matters.
The unusual attention accorded On-Bright — a Chinese maker of chipsets for power management that’s listed in Taipei and has a market value of NT$9.88 billion ($324 million) — reflects growing scrutiny of American M&A efforts in China.
Regulators may be responding to a string of rejections that have foiled Chinese efforts to acquire US companies because of national security concerns, including Tsinghua Unigroup’s abortive effort to lead a buyout of Western Digital Corp in 2016.