EE Times notes there's a growing trend of Chinese fabless firms delisting from Nasdaq to become quasi-state enterprises. The site names Spreadtrum Communications and RDA Microelectronics as examples from firms who go "private" to be able to get a fresh infusion of state funds:
China's current fabless chip market -- fragmented among too many little players fighting for the low-margin smartphone, tablet, and set-top box chip business in the domestic market -- isn't sustainable. To break that cycle, fabless companies require fresh focus, more distinct market/product differentiation, fewer and more patient investors, and probably a few more grown-up managers.
By going private, these companies become state-owned entities and look for a fresh infusion of state funds. But this tactic doesn't guarantee success. It's simply the latest angle Chinese fabless companies are taking in hopes of growth and profitability.