According to reports, Infineon tried to acquire STMicroelectronics in 2017 and held early talks on the acquisition last year.

According to informed sources, since the two sides have never publicly announced the matter, it is not clear whether the two sides have conducted further negotiations, and it is not clear how STMicroelectronics accepted the transaction last year. According to people familiar with the matter, the French government is one of the largest shareholders of STMicroelectronics and is opposed to the merger.

According to reports, the French and Italian governments jointly held a 27.5% stake in STMicroelectronics through a holding company. STMicroelectronics is one of the largest suppliers of smartphone manufacturers, while Infineon focuses on the automotive market, the acquisitions can complement each other to create a larger global semiconductor giant. Excluding employment impacts, the government would supports the acquisitions, but if it will lead to massive unemployment in France and Italy, the government may not support it.

For a long time, the industry has been speculating, as companies pursue scale expansion, what if the merger between the two largest listed chip manufacturers in Europe? Since neither party has publicly stated this matter, there is currently no definitive news. It is worth mentioning that if the two sides have follow-up negotiations and reach a deal, a semiconductor giant with a broader product range and annual sales of $17.5 billion will be born.