The planned merger between MediaTek and MStar Semiconductor may be forced to be postponed again due to slow scrutiny procedures by the governments of China and Korea on concerns of protecting related industries in the two countries, according to industry sources. The deal was delayed earlier to May 1, 2013 from the original schedule set for January 1.

China and Korea both are concerned about unfair competition and damage likely to be brought upon to the supply chains of their domestic handset and LCD TV industries by the merger, and therefore, have tightened up their scrutiny procedures, the sources commented.

The China government is expected to approve the merger deal in early March at the earliest, the sources noted.

However, the China government is also expected to impose some restrictions on the deal in order to protect its own IC design industry as MediaTek will account for over 70% of China's handset solution market after completion of the merger, the sources noted.

The scrutiny process in Korea is progressing even slower than that in China, since the Korea government has been asking MediaTek to offer more details about the planned merger, the sources indicated.

It is unknown when the Korea government will complete its scrutiny.