L
attice Semiconductor Corp (LSCC.O),
a U.S. maker of programmable chips in mobile phones and tablets, is
exploring a sale that has attracted interest from a prospective Chinese
buyer, according to people familiar with the matter.
The
sale process could be a further test of corporate China's ability to
snap up U.S. chip makers, after attempted deals by Unisplendour Corp Ltd
(000938.SZ)
and China Resources Microelectronics Ltd were dropped this month on
concerns the United States could block them on national security
grounds.
Lattice
Semiconductor's sale discussions are also another example of the wave of
dealmaking sweeping the industry, fueled by a drive by major consumers
of chips, such as Apple Inc (AAPL.O) and Samsung Electronics Co (005930.KS), to cut costs.
Lattice Semiconductor is working with investment bank Morgan Stanley (MS.N)
to review interest from potential buyers, including a Chinese party,
the people said on Friday. There is no certainty Lattice Semiconductor
will agree to any deal, the people added.
The Chinese party's
identity could not be immediately established. The sources asked not to
be identified because the sale process is confidential. Lattice
Semiconductor and Morgan Stanley offered no immediate comment.
Based
in Portland, Oregon, Lattice Semiconductor makes programmable logic
chips and related software used in everything from smartphones to cars.
It has a market capitalization of about $678 million.
Earlier this week, Unisplendour scrapped its planned $3.78 billion investment in U.S. hard-disk maker Western Digital Corp (WDC.O) after the U.S. Committee on Foreign Investment (CFIUS) decided to review the transaction.
A Chinese
consortium that included China Resources Microelectronics also lost a
$2.5 billion bid to acquire Fairchild Semiconductor (FCS.O) earlier this month. Fairchild cited the risk of CFIUS blocking that deal for its decision.
Lattice
Semiconductor has been working to integrate Silicon Image, a U.S.
company it bought for $600 million in its biggest-ever deal last year,
which expanded its products for video customers.
Lattice
Semiconductor Chief Executive Darin Billerbeck said on an earnings
conference call earlier this month that he expects the first quarter "to
represent a low point" of the year for the company.
Lattice
Semiconductor blamed its weak quarterly revenue on Samsung, one of its
biggest customers, and its peers struggling with profitability and
cheaper phone models.
http://www.reuters.com/article/us-latticesemiconductor-m-a-idUSKCN0W000D
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