The American chip manufacturer Qualcomm no longer sees any salvation in an acquisition of its Eindhoven-based industry partner NXP.
Qualcomm paid NXP a US$2 billion fee to terminate the deal and embarked on a US$30 billion stock repurchase plan to appease disgruntled shareholders after failing to obtain regulatory approval from the Chinese government in July.
Xi told Trump "he is open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him", White House Spokeswoman Sarah Huckabee Sanders said in the statement.
White House economic adviser Larry Kudlow said on Monday that President Donald Trump put the issue of USA chipmaker Qualcomm Inc's now abandoned acquisition of Dutch peer NXP Semiconductors NV on the table for talks with Chinese President Xi Jinping.
"Qualcomm considers the matter closed and is fully focused on continuing to execute on its 5G road map", it added.
Qualcomm itself was a takeover target for Broadcom earlier in the year, but Trump blocked the proposed $140 billion attempt on national security grounds. Qualcomm spent Dollars 22.6 billion on share buybacks in the 12-months ended September, using up the cash reserves it had set aside for the acquisition and ending any possibility of a renewed bid. However, the Chinese regulators insisted that antitrust issues remained, hence their refusal to give the green light - they denied the episode had anything to do with the trade war. The deal previously fell apart as it failed to secure Chinese regulatory approval. With NXP being the biggest supplier to the industry, Qualcomm could be forced to reopen the deal amidst a grim outlook for the mobile chip industry in the coming months.
After the meeting, Trump said they had reached an "incredible deal".
Qualcomm had sought to purchase NXP because of its market position as a dominant supplier to the automotive market, as auto makers add more chips to vehicles each year. A successful acquisition of Mellanox could prove an important test of China's appetite to approve such deals.
U.S. lawmakers also passed reforms earlier this year that increased CFIUS' scrutiny of deals.