Bloomberg: NXP Semiconductors Mulls Sale Of Standard Products Business

(RTTNews) - NXP Semiconductors N.V. (NXPI) is exploring a sale of its standard products business and may seek at least $2 billion for the unit, Bloomberg reported Friday, citing people familiar with the matter. NXP Semiconductors merged with Freescale Semiconductor Ltd. (FSL) Last year.

The standard products unit, which makes diodes, transistors and other standard chip products, has drawn interest from Chinese suitors, including Beijing-based investment firm Jianguang Asset Management Co., or JAC Capital.

According to the Bloomberg report, Chinese bidders are attempting to develop a local semiconductor supply chain. However, they have faced setbacks in their quest for acquisition of technology assets amid stiff opposition from the U.S. government due to worries over national security.

JAC Capital acquired NXP's radio frequency chip unit for $1.8 billion in 2015. The divestment of the unit was a condition for NXP's merger with Freescale Semiconductor. In February last year, NXP said it plans to form a Chinese joint venture with JAC Capital.

NXPI closed Thursday's trading at $81.26. In Friday's pre-market, the stock is up $1.99 or 2.45 percent to $83.25.