China chip hopes thwarted as Fairchild rejects bid

China’s huge acquisitive interest in foreign semiconductor assets is not going as smoothly as it would wish after Fairchild Semiconductor turned down a $2.6 billion joint bid from a Chinese consortium on Tuesday.

The American chipmaker rejected a $21.7-per share bid from a consortium formed by China Resources Microelectronics and Hua Capital Management, casting some doubt over whether it would be approved.

“The board concluded that there is some non-negligible risk of a failure to obtain an approval from the Committee on Foreign Investment in the United States,” Fairchild said in a statement filed with the US Securities and Exchange Commission.

The Committee...