Citing sources familiar with the matter Bloomberg reported that NXP Semiconductors NV is considering a sale of its standard products business and has received interest from Chinese buyers.

NXP makes semiconductor parts such as diodes, transistors and other standard chip products used in consumer electronics such as phones, television sets and cars. Sources that were quoted in the news report say that the company may seek at least $2 billion for the unit. The shares of the company saw an upward movement by 3 percent in early U.S. trading.

As semiconductor firms look to higher margin areas like automotive electronics for sales growth, a year-long merger wave was fueled by faltering demand in computer and phone markets which was once considered to be the mainstay of the semiconductor industry.

In December NXP completed a near $12 billion deal to buy Freescale Semiconductor Inc and became the world’s top maker of automotive electronics. This was a clear signal from the company that it was changing its business outlook and had committed to a new strategy.

Bloomberg news reported that Jianguang Asset Management Co, the Beijing-based investment firm known as JAC Capital was among a few companies that have shown interest in the standard products business of NXP.

The RF Power business of NXP was sold to Jianguang Asset Management last year for $1.8 billion. NXP is an offshoot of the Dutch consumer electronics giant Philips. NXP Semiconductors had merged with Freescale Semiconductor Ltd. last year.

As Beijing seeks to become a global semiconductor powerhouse, China has shown particular interest in investing in foreign technology companies. However after the U.S. government expressed concerns over national security, many of the bidders from China which is seeking to develop a local semiconductor supply chain, have faced setbacks in their pursuit of technology assets.

Following opposition from the Committee on Foreign Investment in the United States, or CFIUS, a $2.8 billion sale of its lighting-components business to a Chinese consortium was scrapped by Royal Philips NV in January.

The company did not comment on rumors or speculation, said Joon Knapen, a spokesman for NXP. JAC Capital did not immediately respond to a request for a comment.

The standard products unit is estimated to be $2.17 billion and the company expects it to contribute about 13 percent to NXP’s first quarter revenue, the company said in s statement. While the standard products unit booked operating profit of $264 million, the revenue from the unit fell 3 percent to $1.24 billion last year.

The shares of NXP had fallen more than 3 percent this year. The value of the company is at about $29 billion.

“It makes total sense, and it has been discussed before. It fits in with the company’s strategy and management’s desires,” Anand Srinivasan, an analyst for Bloomberg Intelligence, said by phone.

In a deal that helped smooth regulatory approval for the Freescale merger, the state-owned JAC Capital acquired NXP’s radio frequency chip unit for about $1.8 billion last year. It plans to form a Chinese joint venture with JAC Capital, NXP had said in February last year.

Since completing the Freescale merger NXP has shifted to supplying chips for secure processing and connectivity. It is now the biggest chip supplier to the automotive industry.

(Adapted from bloomberg.com)