Although the rejection of the Lattice deal was expected, it none the less has an impact on a number of dynamics in the chip industry and further M&A and consolidation. Freezing out China removes a "catalyst" in the market which help bid up values and add fear to both potential targets or those left out. Cross border deals are obviously more difficult to get done and even small deals with China will likely be put under a microscope now.
The Xcerra deal is likely very safe given the size and lack of critical technology. Much like the Mattson deal before it, China will only be allowed to acquire second or third tier small chip companies with no unique technology or critical market position.
Does this slow down China's chip ambitions?
Does this slow down M&A and consolidation further?
Does this negatively impact future sales of equipment to China?
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