China's focus on semiconductor industry fuels bidding war for ISSI

New York

UPHILL Investment Co's deal to acquire Integrated Silicon Solution Inc (ISSI) after a six-week bidding war with Cypress Semiconductor Corp shows how determined China is to build up its own semiconductor industry.

ISSI's shareholders on Monday approved the China-backed fund's US$731 million offer, ending more than a month of opposing bids. San Jose, California-based Cypress said last week that its best and final proposal was US$22.60 a share, shy of Uphill's US$23 a share offer.

The deal, which remains subject to US regulatory approval, is the latest example of China's desire to shed its reliance on overseas technology. ISSI has annual sales of less than US$350 million, placing the Milpitas, California-based company well down the ranks of global suppliers. The pursuit of the company, however, reflects a broader competition to add expertise in the US$300 billio…