Chip-set giant Qualcomm has abandoned its proposed acquisition of Dutch rival NXP Semiconductors.
The deal has been 20 months in progress and would have been the largest-ever in the semiconductor sector, but it had emerged that China’s regulators were not in favour.
Qualcomm is the world’s largest maker of chipsets for mobile phones. A successful acquisition of NXP would have taken it closer into the automotive market, and IoT sector, where NXP is strong.
NXP is also busy in the radio and wireless markets, making advanced car radio chipsets and tuners for TV and set-top boxes.
“We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments,” Steve Mollenkopf, CEO at Qualcomm, said in a statement late on July 25th.
The terms of the agreement needed an approval by the China regulators by midnight, New York-time, July 25th (or 5am London time July 26th).
Qualcomm has to pay a $2 billion break-up penalty to NXP.