Taiwan’s Mediatek offers to buy rival Mstar

TAIPEI: Taiwanese chip designer Mediatek said on Friday that it had offered to buy rival Mstar Semiconductor, the latest companies to join forces in the fast-growing yet capital-intensive and competitive semiconductor industry.

MediaTek is offering 0.794 of its own shares and NT$1 in cash for every MStar share. It plans to acquire 40 percent to 48 percent of MStar’s outstanding shares through the offer and will at a later date move to acquire the rest of the company.

Both firms are designers of chips for wireless and multimedia applications.

“Facing intense worldwide competition and fast-changing market dynamics, we believe that the combined company will be in a strong position to compete and will further elevate MediaTek’s global competitiveness,” MediaTek Chairman M.K. Tsai said in a statement.

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