Unigroup still wants Micron

Tsinghua-Micron-BuyoutUnigroup chairman Zhao Weiguo has packed his bags and headed to the US to try and save a deal where his company ends up buying Micron.

Micron dismissed an informal $23 billion offer by state-backed investment firm Unigroup in July because it thought that the US regulatory committee that reviews foreign acquisitions of sensitive US companies would block the deal on national security concerns.

The US government hinted that Unigroup’s acquisition would be a problem because Micron chips are used in US weapons systems and China might snoop on them.

Republican US Senator John McCain  had raised national security concerns in July from the proposed deal.

But Unigroup chairman Zhao Weiguo’s visit reflects a belief that there is still hope for what would be the largest foreign deal by a Chinese company and a major step for the nation’s modest but up-and-coming chip industry.

Zhao will also make a stop in Washington to meet with policy experts familiar with the CFIUS approval process, one of the sources said. Zhao is expected to return to Beijing next week.