The investment arm of one of China’s top universities is planning to offer $23 billion for chipmaker Micron Technology Inc., a person familiar with the matter said, in a deal that would be the largest takeover of a foreign firm by a Chinese company. Micron surged in Frankfurt trading.
Tsinghua Unigroup Ltd. will bid $21 a share, or about 19 percent more than Monday’s closing price in New York, and present the offer as soon as Tuesday, said the person, who asked not to be identified because the matter is private. Micron spokesman Dan Francisco said the company hasn’t received a proposal.
A purchase would give China, which accounts for more than half of the world’s demand for semiconductors, the technology to build memory chips that go into computers and smartphones. The Chinese government has budgeted to spend as much as 1 trillion yuan ($161 billion) on the chip industry over the next five to 10 years, consulting firm McKinsey & Co. estimates.