State-owned Chinese group Tsinghua prepares $23 billion bid for U.S chipmaker Micron

By midian182
Jul 14, 2015
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  1. China's state-backed Tsinghua Unigroup Ltd is preparing a $23 billion bid for U.S. memory chip maker Micron Technology Inc. If the deal goes through, it would be the biggest Chinese takeover of a U.S. company.

    A person close to Tsinghua said the Chinese technology conglomerate is preparing to bid $21 per share for Micron, a 19.3% premium over its Monday closing price. The source added that the offer could come as early as Wednesday.

    Beijing-based Tsinghua, the country's largest state-owned chip design company, has been on the hunt for opportunities in the U.S. technology sector. The company’s potential purchase of Micron is regarded as a strategic move to help the advancement of China's own chip sector, according to CNBC.

    If the deal does go ahead, it’s likely to come under scrutiny from U.S officials, who have blocked Chinese takeover attempts in the past on national security grounds. According to the Wall Street Journal, the most likely review body would be the Committee on Foreign Investments in the United States, which brings together officials from more than a dozen government departments and agencies.

    Vincent Gu, a Shanghai-based analyst at iSupply, said the chances of the U.S. government approving the deal would be "next to zero" given the political hurdles. "It's difficult to purchase the critical technology. China should stay firmly grounded and persevere with researching the technology itself," Gu said.

    Idaho-based Micron is so far staying tight-lipped over the deal; spokesman Daniel Francisco said: “While Micron does not comment on rumors or speculation, we can confirm we have not received an offer.”

    Micron shares have been down this year on weakening demand for its DRAM chips amid a decline in global PC shipments. The company also produces NAND flash memory and solid-state drives.

    Permalink to story.

  2. Capaill

    Capaill TS Addict Posts: 279   +86

    What could the Chinese possibly do if they produced DRAM chips, NAND flash memory and solid-state drives on an international scale?
    Nope, nothing to see here, move along.
    p51d007 and Wendig0 like this.
  3. fps4ever

    fps4ever TS Booster Posts: 70   +58

    This can't be good...why would the US let them do that?
    p51d007 and Wendig0 like this.
  4. RustyTech

    RustyTech TS Guru Posts: 814   +382

    The Chinese practically own everything in the US already; so why not just continue the trend?
    p51d007 likes this.
  5. p51d007

    p51d007 TS Evangelist Posts: 852   +352

    Once they get a monopoly on everything, look for some made up event, like a fire, flood, explosion to "cripple" the manufacturing, and watch the prices SKYROCKET. With over 6 billion people, they don't care if they blow up a building with a few thousand slave workers. I'm sure there are more willing to take the risk.

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