NXP Semiconductors NV, which last year merged with Freescale Semiconductor Inc, is selling its standard products business to a group of Chinese investors for US$2.75 billion, furthering China’s efforts to acquire chip assets and reduce imports.
China’s Beijing Jianguang Asset Management Co (北京建廣資本) and Wise Road Capital Ltd are to be the new owners of the business, NXP said in a statement on its Web site.
The unit, which had revenue of US$1.2 billion last year, is to transfer about 11,000 NXP employees to a new company that is to be called Nexperia.
The world’s most populous nation is seeking to buy up semiconductor capabilities to bolster its domestic industry and replace imports, which have sucked almost as much cash out of the country as oil purchases.
China’s push to acquire overseas expertise has faced obstacles, as US government regulators have expressed concern about the transfer of technology that could be used for military purposes.
NXP, based in Eindhoven, the Netherlands, said selling the division, which makes diodes, transistors and other basic parts used in cars, industrial equipment and consumer electronics, would free up capital to allow it to invest in more complicated semiconductors.
NXP shares, which trade on the NASDAQ, rose 1.6 percent in extended trading.
Beijing Jianguang, part of China Jianyin Investment Ltd (中國建銀投資), was established to invest in businesses in the semiconductor, information technology, networking, data service, cloud computing and telecommunications industries, according to the statement.
Wise Road Capital is a global private equity fund with a similar mandate and also invests in “renewable energies,” advanced manufacturing and “smart” cities.
China has been trying to free itself from a heavy reliance on foreign technology, with semiconductors seen by the nation’s political leadership as vital to national security.
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