A recent announcement from the China Ministry of Commerce heralds the final phase of the ongoing company merger process between Mediatek and Morningstar Taiwan (Mstar). The companies originally filed for merger back in June 2012 and immediately ran into resistance from several Asian trade and commerce officials. After gaining approval from the both the Taiwanese and South Korean Fair Trade Commissions, the proposed merger has been delayed since late 2012 primarily over concerns that China trade officials had with the deal.
The primary concerns noted by Ministry officials centered around the already weak state of alternative TV SoC suppliers operating in the marketplace by 2012, a condition that would only grow worse (from the standpoint of TV manufacturers) with the merger of the two largest suppliers of controller chips to the TV market. How will the two companies alleviate the Ministy’s concerns and proceed with the merger, and where will the newly combined company sit among the largest semiconductor suppliers in the world?
To read more, please log in to your account.