CHINA TOPIX

Updated 11:29 AM EDT, Tue, Jun 16, 2020

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China's Shanhai Capital to Acquire U.S. Chipmaker Analogix Semiconductor for $500M

Beijing Shanhai Capital Management offered a takeover bid to chip maker Analogix Semiconductor in a deal worth more than $500 million.

(Photo : YouTube Screenshot) Beijing Shanhai Capital Management offered a takeover bid to chip maker Analogix Semiconductor in a deal worth more than $500 million.

Following a number of high-profile attempts to acquire a U.S. semiconductor maker, recent news reveals that Beijing Shanhai Capital Management offered a takeover bid to chip maker Analogix Semiconductor in a deal worth more than $500 million.

"We are very happy to have reached this agreement, which provides significant value to shareholders. The financial support of Shanhai Capital propels our growth while maintaining the direction, organization, and determination to serve our customers," Kewei Yang, Chairman and CEO of Analogix Semiconductor, said in a statement.

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Meanwhile, Xianfeng Zhao, chairman of Beijing Shanhai Capital Management, is also pleased of the deal and is "looking forward to facilitating Analogix's continued growth."

"With the added investment, we can leverage the strength of the company's core technology and business expertise, extend our business into adjacent high-growth markets, and build a world-leading semiconductor company," he continued, adding that Analogix will be expecting an IPO in China soon.

The National Integrated Circuit Industry Investment Fund also joined with Beijing Shanhai Capital as one of the limited partners, China Tech News reported. The over half-a-billion dollars deal is still subject for regulatory approval from authorities and is expected to be completed later this year.

The Santa Clara, California-based Analogix manufactures high-speed, mixed-signal chips to be utilized in cellular phones, virtual/augmented reality, and other cutting-edge devices. According to Tweak Town, it has high-profile customers including Apple, Samsung, Microsoft, Google, Lenovo, to name a few.

However, Analogix, which is privately owned by venture investors such as Woodside Fund and DCM, is only established in 2002 and is relatively young compared with China's previous public acquisition targets, Forbes noted.

Although the country is the biggest consumer of such chips that power almost everything, it failed to compete fiercely with U.S. giants with the likes of Qualcomm and Intel and Asian leaders including South Korea's Samsung and Taiwan's TSMC.

But if Analogix and Beijing Shanhai Capital's deal meets less political resistance, China could finally see an end to its quest of acquiring a foreign chipmaker, Investopedia noted.

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