Montana Home Collection has abruptly terminated its plan to acquire a controlling stake in Shanghai Chuantu Microelectronics, just 13 days after announcing the cross-industry deal. The company cited "failure to reach consensus on core terms" as the reason for calling off the transaction.
The attempted acquisition, initially revealed on November 5, would have marked Montana's entry into the high-end analog chip sector. The home furnishing company reported flat revenue growth in the first three quarters of 2025, while Chuantu Microelectronics operates in the rapidly expanding industrial control and automotive electronics markets.
Chuantu Microelectronics, founded in 2016, specializes in isolation and interface chips, power drivers, and high-performance analog circuits. The company serves over 5,000 customers and had been preparing for a potential IPO after completing a shareholding reform in July 2025.
Industry analysts suggest several factors likely contributed to the deal's collapse:
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High R&D costs and integration risks for Montana entering the semiconductor sector
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Valuation gaps between the companies, with Chuantu's shareholders likely expecting premium pricing given strong market demand for domestic analog chips
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Strategic misalignment between a traditional home furnishing business and a specialized chip designer
The failed acquisition highlights common challenges when traditional companies attempt to enter the semiconductor industry, including technical barriers, valuation discrepancies, and integration complexities.
ICgoodFind :The terminated deal reflects the practical difficulties of cross-industry acquisitions in semiconductors, with both companies now likely to pursue independent development paths.
