Even though there is a salient trade issue between the US and China, Qualcomm is still determined to purchase NXP Semiconductors. Although NXP Semiconductors were willing to do business, Chinese regulators put all transactions on hold pending when the two countries settle their rift. An unidentified Beijing official said that the deal will pull through but there is no confirmation to that. Now, NXP Semiconductors’ market share price rose by 5.9%, the biggest increase since Monday. Yesterday, representatives of Qualcomm and NXP Semiconductors declined to comment.
Gizchina News of the week
The breached trade relations between the United States and China, as well as underperforming financial reports, have made this Dutch semiconductor company turbulent in the last month. On May 2nd, NXP Semiconductors reported that its revenue and profits were not as good as analysts expected. Since then, the company’s share price has risen by about 20%. Even if there is an increase on Friday, the stock price is still less than Qualcomm’s offer of $127.50 per share.
“Bloomberg News” reported on May 14th that in response to the increasingly tense trade relationship between China and the United States, Chinese regulators temporarily suspended the application for NXP Semiconductors submitted by Qualcomm. Recently, Chinese regulators have again started to review Qualcomm applications. In the case of Qualcomm’s acquisition of NXP Semiconductors, there are concerns from Chinese companies that the combined company may allow Qualcomm’s patent licensing business to expand into mobile payments and autonomous driving.