MaxLinear Terminates Acquisition of Silicon Motion

【Lansheng Technology Information】U.S. chipmaker MaxLinear said it ended its attempt to acquire Silicon Motion, closing a $3.8 billion cash-and-stock deal.

Industry insiders believe that the change in the case of MaxLinear’s acquisition of Viro is quite dramatic. It is speculated that MaxLinear’s move is mainly to force Viro to return to the negotiating table and renegotiate the price to ease the financial burden.

However, the latest report issued by foreign investors in the United States explains that although there are many third-party NAND controller IC suppliers, Silicon Motion Technology occupies 50%~55% of the global and Chinese mainland NAND controller third-party market share, plus quality, process, and efficiency. And cost advantages, occupying a dominant position in the NAND controller integrated circuit market, so this transaction also makes Chinese mainland regulators quite worried. Therefore, the State Administration for Market Regulation in mainland China requires both parties to the transaction to fulfill five obligations. The first is to continue to supply NAND storage main control chip products to mainland China in a fair, reasonable and non-discriminatory manner, and to maintain the existing customer contracts and existing contracts of Huirong Technology. There is a business relationship.

Secondly, the existing business model and operation of Huirong Technology shall not be substantially changed; the third is to retain Huirong Technology’s research and development related to NAND storage master chips in Taiwan, China; the fourth is to retain the company’s R&D resources in mainland China to support The demand for NAND controllers in the mainland China market; finally, no malicious codes should be added to the design of products sold in mainland China.

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