Chinese tech company Tsinghua Unigroup is rumored to have made a $23 billion offer on Wednesday to buy US-based chip manufacturer Micron. If the deal pushes through, it would go down as the largest Chinese purchase of an American company in history. 

The Wall Street Journal reported that Tsinghua's offer price for every Micron share is $21 or almost 20 percent over their closing price on July 13 in the US stock market. Micron shares have lost 50 percent of their value from a high in 2014. A Micron share was priced at $17.61 when the Nasdaq closed on Monday.

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Micron officials have disputed the rumored buyout, according to Computer World. Micron spokesperson Dan Francisco told reporters that they are yet to see an offer from Tsinghua group.

If the offer is accepted, the Chinese company would cement its position as the top technology firm in the country. The tech firm specializes in developing semiconductor technologies for China and is run by the University of Tsinghua. One of its former students is Xi Jinping, China's current president. Tsinghua also enjoys the support of the Chinese authorities, according to Reuters.

If Micron agrees to the buyout deal, the U.S. government would move in to examine the purchase. The deal can be voided if American lawmakers deem it a threat to the country's political and security interests.

iSupply analyst Vincent Gu doubts that Tsinghua would ever be successful in acquiring the only remaining American main chip manufacturer. The current political atmosphere between the two countries virtually guarantees that such purchase bids from Chinese companies would not be allowed.

The analyst said that Chinese tech companies would be better off developing advanced microchip technology on their own.

Micron's chips are mostly used for data storage on smartphones or cameras and other similar gadgets.

Tsinghua entered the chip making industry by acquiring two local chip manufacturers in 2014 and spent $1.6 billion on the purchase. Intel invested $1.5 billion in Tsinghua last year and both companies agreed to conduct joint studies that will improve the current chip-making capabilities of the Chinese firm.

TagsTsinghua Unigroup, Micron, us chip makers, Nasdaq, Tsingua Microelectronics, Micron Technology, Micron Stock