BEIJING - A US chipmaker's attempt to acquire a peer with a valuable Chinese affiliate has spurred concern in Beijing, as tensions between the world's two biggest economies threaten to disrupt the global tech supply chain.
The State Administration for Market Regulation is heeding warnings from multiple industry organizations about the acquisition and could consider asking the Chinese assets to be excluded from the deal, said the person, asking not to be identified talking about sensitive matters. Regulators may be responding to a string of rejections that have foiled Chinese efforts to acquire US companies because of national security concerns, including Tsinghua Unigroup's abortive effort to lead a buyout of Western Digital Corp in 2016. It underscores Beijing's concern about an overwhelming reliance on American-designed semiconductors, which has spurred a nationwide effort to develop homegrown chip technology.