China's state-backed technology conglomerate Tsinghua Unigroup, which owns both Spreadtrum Communications and RDA Microelectronics, has expressed interest in merging its two chip units with MediaTek.

Tsinghua Unigroup chairman Zhao Weiguo said in an interview with Taiwan's media on November 1 that if Taiwan's government lifts the ban on investments by China-based firms in the island's lC design sector, Tsinghua Unigroup is willing to visit MediaTek and discuss a potential merger deal between its units Spreadtrum and RDA and the Taiwan-based company.

Zhao admitted that during his trip to Taiwan this time, he did consider meeting with MediaTek chairman Ming-Kai Tsai to discuss a potential tie-up between Tsinghua Unigroup and MediaTek, but could not make it as Taiwan's current regulations will limit the scope of their talks.

There is room for cooperation between China and Taiwan in the IC design sector, Zhao indicated. Spreadtrum and RDA, both controlled by Tsinghua Unigroup, have their respective expertise in mobile device chips and IoT-related solutions.

In a company filing with the Taiwan Stock Exchange (TSE), MediaTek responded by saying that as long as government policies allow, MediaTek will adopt an open attitude and is willing to join hands with China-based peers to raise the competitiveness of Chinese enterprises in the global semiconductor industry.