Securing Chinese Regulatory Approval for a U.S. Semiconductor Acquisition
Our Objective
One of the biggest issues defining geopolitics today is U.S.-China tech competition. A U.S. semiconductor firm approached our team to help secure approval from China’s antitrust body and market regulator (SAMR) to acquire a Taiwanese semiconductor firm.
Our Approach
Given the geopolitical tensions surrounding semiconductors, other similar high-tech merger and acquisition (M&A) deals had become political and failed to win Chinese approval. Our client’s challenge was further heightened due to sensitivities around U.S. restrictions on chip exports to China — not to mention the sensitivities around Taiwan. Our strategy was straightforward: focus on the merits of the case and avoid playing politics. We developed a plan to engage the whole Chinese system — not just the regulator, but also the broader industry — which we knew to be highly influential in these decisions. More than that, we engaged at the working levels of the regulators and semiconductor associations — not just the top. This gave us the opportunity to gather insight on the deal’s status, which informed the process of working the deal through the system.
Our Impact
The acquisition was approved. Our approach built awareness among a wide range of Chinese industry and government officials that the acquisition was not an antitrust concern, but instead a positive approval would be a signal toward reaffirming to the global industry that Chinese regulators were focused on case merits and not politics.
