US chipmaker Qualcomm is expected to refile an application with the Chinese government next week to clear its $44 billion takeover of NXP Semiconductors, giving regulators more time to decide on the deal and to avert a collapse. Qualcomm, based in San Diego, withdrew an earlier antitrust application last Saturday at the request of China’s Ministry of Commerce (Mofcom), before yesterday’s deadline to decide on the transaction.
The deal would create the world’s biggest in the semiconductor sector, and diversify its customer base and become the leading chip supplier to the fast-growing automotive market. Qualcomm has already received approval from eight of nine required global regulators to finalize the acquisition, with only Chinese clearance pending. The refiling gives the ministry another six-months window to review the application. However, the Mofcom decision is likely to be held up until trade and investment tensions between China and the United States are resolved.