China scrutinizes US bid to control Chinese chipmaker

BEIJING (Bloomberg) -- 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.

China’s antitrust regulator is closely monitoring Diodes Inc.’s proposed US$428 million takeover of Taiwan’s Lite-On Semiconductor Corp, responding to complaints a deal will deliver the Taiwanese company’s Shanghai-based affiliate On-Bright Electronics Inc into American hands, according to a person familiar with the matter.

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.