The China government will support local IC-design companies' development in the MCU, CPU,FPGA, MEMS and memory chips sectors through acquisitions during its current five-year economic plan running from 2015-2020, accordingto Digitimes Research.

Since most China-based IC-design houses engaged in MCU, CPU, MEMS and memory products are at their infant stages at present, it is an established policy of the China government to provide financial support to local IC companies to acquire related businesses globally for capacity ramps or technology upgrades.

Under such a policy, China-based Hua Capital Management has acquired Omnivision, Jiangsu Changjiang Electronics Technology (JCET) has taken over Singapore's STATS ChipPAC, and Uphill Investment is ready to take over the control of US-based Integrated Silicon Solution (ISSI).

Companies which have key technologies or significant market positions in the MCU, CPU, MEMS and memory sectors are thus likely to become China's acquisition targets, Digitimes Research commented