Tsinghua Holdings Co Ltd, state-owned unit, would purchase Spreadtrum Communications Inc for US$1.78 billion. Spreadtrum was a mobile chip designer in China.

Tsinghua Unigroup would pay every Spreadtrum American Depositary Share for US$31. On Friday, the companies said that the amount offered was increased from only US$28.50 per ADS.

The bid signified a premium of 17% to Spreadtrum's Thursday ending price on Nasdaq. On Friday, Spreadtrum's stocks climbed 12.5% at US$29.75 in premium exchange.

Spreadtrum developed chips for smartphones and other gadgets. The chips it made supported 2G, 3G and 4G wireless communication requirement.

Tsinghua Unigroup would provide Spreadtrum's expertise in merchandises, protection and sustenance of a vast IP portfolio. Zhao Weiguo, Tsinghua Unigroup's Chief Executive, said that the company would also offer Spreadtrum the chance to access China's relevant capital markets.

Tsinghua Holdings was a Chinese state-owned company funded by Tsinghua University. It controlled Chengzhi Shareholding Co Ltd and Unisplendour Co Ltd, another technology firm.