Applied Materials might disclose plans to purchase Kokusai Electric, which is its smaller Japanese peer. Nikkei has learned that the latest agreement is expected to be worth approximately $2.3 Billion. By the end of the year, the US-based firm aims to buy the entire ex-Hitachi group member from KKR, an American private equity group, as per the sources known with the negotiations.
The acquirement is expected to be revealed in a couple of days. It is supposed to expand Applied Materials’ product array at a time when the semiconductor sector is competing to develop more improved chips for applications such as artificial intelligence and 5G networks. As a supplier, having numerous types of equipment makes it easier to form novel devices and build up expertise. However, this deal might witness close scrutiny from regulators.
On a similar note, the Trump administration came into the news as in May 2019 it prohibited the sale of American technology to Huawei, the Chinese tech giant. However, according to a report in The New York Times, numerous U.S. firms such as Micron and Intel are selling computers chips to Huawei once again.
Sanjay Mehrotra, CEO, Micron, confirmed in this week’s earnings call that over the last two weeks the firm started shipping orders to Huawei again. At the same time, when contacted to Intel, it refused to comment on this topic. Micron is the largest maker of computer memory chips in the U.S. Similarly, Intel is the largest semiconductor chip manufacturer in the U.S. China’s Huawei is said to be the 2nd biggest phone manufacturer worldwide. Huawei holds a background of allegations of spying, an intensifying trade war, and national security threats from the Americans. So, earlier, the Commerce Department put Huawei on the “Entity List” and banned the U.S. companies from selling particular kinds of tech and data to the Chinese firm.
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