On Monday, The shares of NXP Semiconductors have hiked by more than 10 percent. This hike is due to the report that China has resumed its review of U.S. chipmaker Qualcomm proposed $44 billion buyout of the Dutch semiconductor company.
Shares of Qualcomm was up 2.5 percent in premarket trading.
That sweetener came weeks before President Donald Trump, citing national security and worries about China gaining the upper-hand in fifth-generation (5G) mobile network technology, ordered rival Broadcom Ltd to halt its proposed $117 billion buyout of Qualcomm.
The next NXP deal is the biggest in the semiconductor sector and is crucial to Qualcomm. Qualcomm is seeking to diversify its customer base and become the leading chip supplier to the fast-growing automotive market.
The U.S. chipmaker has already received approval from eight of nine required global regulators to finalize the acquisition. Chinese clearance is the only one pending with regulators continually stalling the takeover amid U.S.-China trade tensions.
Qualcomm refilled its application for the deal, in April, giving regulators more time to decide. The Chinese commerce ministry later that month said Qualcomm needs to do more to complete the takeover because the U.S. company’s initial set of remedies to resolve competition issues were insufficient.
Through a mail, NXP said that “With regard to matters related to the proposed acquisition of NXP by Qualcomm, we encourage you to get in touch with Qualcomm.”