China’s chip designer Goodix Technology has been approved by the country’s antitrust regulator to acquire NXP Semiconductor’s Voice and Audio Solutions for $165 million in cash, the Chinese company announced on the website of the Shanghai Stock Exchange on Thursday.
The deal will enable Goodix to acquire an industry-leading NXP engineering team, employees based in Europe and Asia as well as relevant intellectual properties. The move should help the Chinese firm to increase its position in the mobile and internet of things (IoT) industries and boost its research and development capabilities in audio applications.
Goodix announced an agreement with Eindhoven-headquartered NXP in an August statement, in which the former company’s CEO David Zhang hailed the pending acquisition as “a strategic move in Goodix’s growth plan”. He added that thanks to the deal, Goodix will be able to provide its customers with a more comprehensive portfolio and will have stronger innovation abilities.
“In the course of adopting this decision, the FCC did not allow Huawei to exercise due process or verify relevant facts. Instead, it loudly and publicly determines that Huawei constitutes a national security threat. This decision violates the US Constitution, and we have no choice but to resort to legal actions,” stated Song Liuping, Chief Legal Officer of Huawei during the press conference today.
According to earlier reports, the Federal Communications Commission (FCC) unanimously decided on November 22 that Huawei and ZTE posed national security threats, and US telecom operators would be barred from using the “general service fund” to purchase services and equipment from the two Chinese companies.
In response, Geng Shuang, spokesman for China’s Ministry of Foreign Affairs, said at a regular press conference on November 25: “The United States is accustomed to abusing state power and suppressing specific countries and enterprises on false charges without providing any evidence. It has previously collapsed Alstom and today it wants to squeeze Chinese enterprises. This kind of economic bullying by the United States is a blatant denial of the market economy principles that it has always advocated.”
Meanwhile, Huawei is arguing that this decision actually hurts US interests, as Song commented, “Operators in rural areas in the United States, including small towns in Montana and Kentucky, and farms in Wyoming, choose to cooperate with Huawei because they recognize the quality and safety of Huawei equipment. They also respect our services, because other equipment manufacturers do not care about their needs. These operators are often ignored by large manufacturers, because providing services in rural areas does not bring considerable benefits.”
https://pandaily.com/huawei-files-lawsuit-against-us-federal-communications-commission/
Thanks AdmSmith.