Beijing is still discussing consolidation plans with chip companies.

Description

Beijing is grappling with setbacks in its plan to turn a disjointed chip industry into a few powerhouse firms that can stand up to global competition. According to sources, the Chinese government has been discussing with key chip equipment manufacturers to consider a state-led merger that would pool their technologies. However, talks have derailed as companies and investors clashed over the proposed ownership setup and valuation. Lee says a merger could help China reduce its dependence on US fir...