Qualcomm is set to make a final push to secure clearance from Chinese regulators for its proposed acquisition of NXP Semiconductors and is “cautiously optimistic”, as trade tensions between the US and China begin to ease, reported Reuters.
Citing sources, Reuters said Qualcomm executives are to meet Chinese regulators this week, before US secretary of commerce Wilbur Ross arrives in China on 2 June.
The planned meeting follows talks between Qualcomm representatives and officials from China’s State Market Regulatory Administration (SMRA) on 25 May, which were described as “productive” by sources.
Qualcomm’s proposed acquisition of NXP Semiconductors, announced in October 2016, has secured clearance from eight of the nine required global regulators, with only China remaining.
However, China’s review into the deal, which was restarted earlier this month, has come amid rising trade tensions between the US and China and a source told Reuters securing approval would depend on the progress of broader talks between the countries.
There are indications tensions between the two countries are beginning to ease.
Last week, US President Donald Trump struck “a deal” to put ZTE back in business, as long as the company pays a $1.3 billion fine and implements managerial changes.
The Chinese vendor announced earlier this month its major operations had ceased after the US government imposed a seven year import ban on key components due to alleged violations of a settlement agreement regarding the company’s dealings in Iran and North Korea.
A Reuters source added “it feels as though it’s getting close to the end”, with regards to the situation between the US and China, after the ZTE issue was addressed by Trump.
The Chinese government restarted its review after stating in April it had found issues regarding the tie-up which were hard to resolve. Qualcomm then refiled its application to buy more time for authorities to rule on the deal as talks stalled.
Aside from rising trade tensions with the US, Chinese regulators are also concerned about the impact of the tie-up on Chinese companies operating in the semiconductor space.
Qualcomm is also reportedly set to submit a new proposal to SMRA, providing final guarantees, added Reuters.