Packaging and testing company ChipMOS Technologies will enter a trading halt on November 30, pending the release of material information, according to a company filing with the Taiwan Stock Exchange (TSE).

Speculation has circulated that ChipMOS is about to terminate its strategic alliance and share subscription agreement with China's state-owned Tsinghua Unigroup. The deal was reached and announced at the end of 2015.

Tsinghua Unigroup agreed to purchase 299.25 million common shares of ChipMOS Taiwan through private placement at a price of NT$40 per unit to acquire a 25% stake in ChipMOS Taiwan for a total of NT$12 billion. The announcement was made when ChipMOS Taiwan was a 58%-held subsidiary of ChipMOS (Bermuda).

Tsinghua Unigroup would also be able to designate a representative to serve as a director on ChipMOS Taiwan's board according to the deal.

In January 2016, shareholders of ChipMOS approved the company's strategic alliance and share subscription deal with Tsinghua Unigroup.

Later in 2016, ChipMOS (Bermuda) and ChipMOS Taiwan merged with ChipMOS Taiwan the surviving company.

Taiwan's Investment Commission has said it is still reviewing Tsinghua Unigroup's proposal to obtain a stake in ChipMOS, and another proposal submitted by the China-based firm to buy shares of Powertech Technology (PTI).

PTI reached a similar deal with Tsinghua Unigroup in November 2015. According to PTI, Tsinghua Unigroup would subscribe to new shares of PTI priced at NT$75 per unit and own 25% of PTI after the deal closes.

Market observers have become more pessimistic about Tsinghua Unigroup's deals with both ChipMOS and PTI, which are unlikely to gain approval from the Taiwan government.