21st Century Business Herald, quoting Cosun subsidiary CEC Telecom chairman Wu Zhiyang. Wu emphasized that the acquisition would not affect either of Cosun's listed subsidiaries, Qiao Xing Mobile Communication and handset manufacturer Qiao Xing Universal Telephone Inc.

The two subsidiaries are amongst the biggest suppliers of handsets and other terminals, but predominantly to the Chinese market.

The report suggests Cosun plans to establish a separate and independent company to run the handset chip business in Beijing if the acquisition is successful. It would invest in the group and use it as the basis of a lrger semiconductor operation serving the handsets business.

There were already numerous reports last month that Cosun was looking to buy the Freescale chip unit, which has been on the blocks since last year.

But in Januaryafter failing to find a buyer for the division Freescale said it was considering other options, including selling it in pieces rather than holding out for a single buyer.

In his newsletter, Strauss reiterates that the pending deal would not include the LTE RF transceiver development group at Tempe, Arizona, but adds this may be sold to Fujitsu, though previous suggestions have linked Samsung and ZTE as potential buyers for this unit.

Related Articles:

Freescale says no wireless unit sale yet

Analysis: Can Freescale beat the odds?

Testing Around Memoriesan inside look