14 DAY TRIAL // As part of its plans to start developing an SSD controller business, MediaTek intends to buy PMC-Sierra. Being placed on the list comprising many Chinese state-controlled satellite companies, MediaTek has probably the highest profile among those interested in buying PMC.
This acquisition will allow MediaTek to become a strong SSD controller maker and probably begin to take on long-time rival Samsung in a new field of business, while also competing with the biggest SSD controller manufacturers, Toshiba and Intel.
Although the new acquisition is not a certain deal, MediaTek is clearly on a shopping spree, since it has recently acquired Richtek Technology, ILI Technology, and Integrated Silicon Solution’s (ISSI) Taiwan subsidiary, Chingis Technology.
Acquiring PMC-Sierra, however, will pose some problems for MediaTek, since most of its previous acquisitions were Asian, and as such, the deals were much easier to strike because interests and obviously political implications were low.
When it comes to PMC, which is an American company, MediaTek will have to face the notoriously picky and scrutinizing Committee on Foreign Investment in the United States (CFIUS), which has recently blocked China's most influential government-backed business consortium, Tsinghua Unigroup.
Rushing for American know-how and talent would need some major background check
CFIUS is basically the US’ government authority that checks the background of any foreign company willing to make acquisitions of US-based enterprises, giving the greenlight, or not, before any deals are confirmed. CFIUS is also known for being extremely picky about what sort of companies can finally make an acquisition, and since Asian giants usually come with Chinese government backing, any similar initiatives that come from the same region are seen with suspicion.
MediaTek, however, is not your everyday shady company or state-own Chinese mammoth, and since Taiwan has a much cleaner reputation with US authorities overseas than China, it might eventually get the greenlight.
According to DigiTimes, Huawei will also probably follow the same path of building SSD controllers. However, they are not direct competitors, and this time Huawei plans to develop an in-house SSD chip focusing primarily on the enterprise market and on first satisfying its internal data center SSDs demand.