China’s Tsinghua Unigroup is growing itself by acquiring Spreadtrum Communications and RFIC company RDA Microelectronics. With a much better portfolio, Tsinghua is well positioned to compete against Taiwan’s Mediatek in the rapidly expanding Chinese domestic market.
Tsinghua Unigroup will now have the ability to offer products for the entire spectrum of products, from high end smartphones to low end feature phones. The most interesting thing is that even Chinese companies are starting to push for higher margins with higher end products.
The strengthening of local semiconductor companies is a deliberate strategy by Chinese government to build up high tech companies capable of going global and compete against the likes of Qualcomm or Broadcom.
- RDA Microelectronics Announces Receipt of Acquisition Proposal (virtual-strategy.com)
- China Continues to Demonstrate Its Merger Control Prowess (antitrust.weil.com)