Fairchild Semiconductor International Inc said the revised unsolicited offer it received from China Resources Microelectronics Ltd. and Hua Capital Management Co Ltd last week is superior to that of ON Semiconductor Corp.
Bloomberg first reported on Monday that Fairchild would deem the revised offer from the group as superior.
Fairchild said on Tuesday its board still supports the deal with ON Semiconductor and is not making any recommendation related to the revised proposal.
Fairchild, based in San Jose, employs about 650 people at a plant in South Portland.
ON Semiconductor in November agreed to buy Fairchild Semiconductor for $2.4 billion to bolster its business of making power-management chips.
In early December, Fairchild said it also received an acquisition proposal from an unnamed party.
Fairchild said last week it received a revised offer from the Party G Group, which has been identified by a source familiar with the matter as China Resources Microelectronics, a unit of China Resources Holdings.
As part of the revised offer, Fairchild said Party G Group would pay it a higher reverse breakup fee and reduce the due diligence period to two weeks from three weeks.