Am I the only one worried about some of the Chinese fabless companies now being state-owned? In the current environment in which the Chinese government keeps using the antimonopoly investigations to pressure foreigh companies, I suspect that Chinese state-owned chip companies -- with less transparency -- will enjoy unfair advantages for years to come.
Chinese fabless comanies -- Spreadtrum, RDA and Montage -- won't be the only targets by China's funds.
OmniVision Technologies, Inc. (NASDAQ: OVTI), based in Santa Clara, announced today that its board of directors has received a preliminary non-binding proposal letter dated August 12, 2014 from Hua Capital Management Ltd. ("HCM"), a Beijing-based investment management company, pursuant to which a group of investors led by HCM proposes to acquire all of the outstanding shares of common stock of the Company in cash, at US$29.00 per share.
The investment group led by HCM includes Shanghai Pudong Science and Technology Investment Co. Ltd., (PDTSI) a wholly state-owned limited liability company, established directly under the Pudong New Area government of Shanghai.
Omnivision's board of directors is reviewing and evaluating HCM's proposal. No decision has been made with respect to the proposed transaction, according to Omnivision's press release.
>> In the current environment in which the Chinese government keeps using the antimonopoly investigations to pressure foreigh companies, I suspect that Chinese state-owned chip companies -- with less transparency -- will enjoy unfair advantages for years to come.
That is the modern capitalsim. The Western world does not need to educate China on how to run its economy after bailing out GM, Chrysler, Lylod's Bank, AIG, Barclays, etc. At least, China knows how to make companies thrive and not give them free cash as we do. No one is honest in today's economic system. Everyone is looking for a small gain. China has its technique. U.S. preaches its own but acts differently when it wants. Same for EU. Let China be China and let us leave them alone. There is no fairness in global trade because it is not a zero-sum game.
Let China be China. Indeed. I won't argue with you on that. However, for those who are competing in the Chinese market, how to deal with the changing political/policy environment in China is a big concern.