QUICK TAKE: NXP sells Advanced Semiconductor Stake to Chinese Buyer

Dutch chipmaker NXP Semiconductors NV said it has sold its 27% stake in Advanced Semiconductor Manufacturing Corp. Ltd., the company’s latest asset sale to a Chinese buyer as it prepares to be acquired by global giant Qualcomm Inc.

NXP said it sold its 421 million Advanced Semiconductor shares to Shanghai Pudong Science and Technology Investment Co. Ltd. for 99 Hong Kong cents (13 U.S. cents) each, giving the transaction a total value of HK$417 million, according to a company announcement on Wednesday.

Advanced Semiconductor shares have rallied by more than 30% since late March, including a 2.4% gain in Thursday trade in Hong Kong. Still, the latest price of 86 Hong Kong cents represents a 13% discount to the price paid by the Chinese buyer for NXP’s stake.

Announcement of the sale comes nearly a year after NXP said it was selling its lower-tech standard products division to China’s Beijing Jianguang Asset Management Co. and Wise Road Capital Ltd. for $2.75 billion. Since disclosing that sale, NXP has also announced it was selling itself to Qualcomm in a deal valued at $47 billion.

NXP’s actions reflect broader consolidation of the global chip sector, while the latest sale also reflects a recent buying spree of domestic and global chip assets by Chinese investors. The Chinese buyers are backed by generous support from Beijing, which is eager to build up a sector for homegrown high-tech chips that power devices as diverse as smartphones and microwave ovens.

Contact reporter Yang Ge (geyang@caixin.com)