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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Return to Sender who wrote (88969)9/9/2022 1:26:03 PM
From: Elroy1 Recommendation

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Return to Sender

  Respond to 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?