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Technology Stocks : Semi Equipment Analysis
SOXX 283.56-1.7%Nov 17 4:00 PM EST

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Return to Sender
To: Return to Sender who wrote (88969)9/9/2022 1:26:03 PM
From: Elroy1 Recommendation   of 95427
 
SIMO is Taiwanese and the buyer MXL is USA.

China says Taiwan is part of China.

Recently the US has banned US semi companies from selling chips to China, just because.

The last obstacle to the MXL-SIMO deal is Chinese regulatory approval.

There is (I think) no precedent of a US company buying a Taiwanese tech company. Most Taiwan deals of this sort are internal to Taiwan.

So......nobody knows what the Chinese regulator may say.

The regulator is supposed to look at anti-trust concerns (does the deal reduce competition?), and there is none of that issue in this deal as MXL and SIMO have zero overlap.

But, will China allow a US company to buy a Taiwanese semiconductor company while China has being self sufficent in semiconductors by 2025 as a national goal, and China thinks Taiwan is part of China?
Who knows, man, who knows?
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