Silicon Motion Inc. (SIMO) Message Board

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Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 90.94

+2.6%

Dec 3 3:59 PM EST

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To: Madharry who wrote (2589)	9/20/2022 1:25:46 PM
From: Elroy	of 2978

I don't think any investor or even the companies have a good idea of whether it will receive Chinese regulatory approval, or not. To my knowledge there is no precedent of a US tech company buying a Taiwanese tech company. The Chinese regulator that needs to approve the deal is supposed to look at whether the deal will decrease compeition in the industry. It will not. However, with the US constantly discussing Taiwan recently, and the US constantly banning sales of high end semis and semi capital equipment to China, it's possible that China blocks the sale of a major Taiwanese semi company to the US........just because. On the other hand, flash controllers are not a key ingredient to national security, and if China blocks this sale then one would imagine the US may block lots of future Chinese acquisitions......just because. So I have no good idea. I think the sale will be approved by China, but it's really just a guess. If the sale doesn't get approved by China, then it likely devalues all the Taiwanese stocks since they're are not free from Chinese control. That could stink.

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