China’s hunger for chips stirs deal spree

China's push to build up its semiconductor industry has spurred acquisitions and brought previously low profile Chinese buyers to the fore.

Jiangsu Changjiang Electronics Technology became the latest to jump on the bandwagon on Thursday, when it made a non-binding proposal to acquire all the shares in Singapore's Stats ChipPAC for $780 million. According to a source familiar with the matter, Stats ChipPAC has about $1 billion in debt, putting the enterprise value at about $1.8 billion.

Stats ChipPAC and Temasek have agreed to negotiate on an exclusive basis with Jiangsu Changjiang until November 30. The proposed deal excludes Stats subsidiaries in Taiwan. According to the exchange filing, there is...