TIANJIN, CHINA – The government of Tianjin is discussing the sale of two firms to TCL Corp., according to reports.

Discussion involves Tianjin Zhonghuan Semiconductor and Tianjin Printronics Circuit.

Possible options include direct stake sales or having TCL acquire control in the major shareholder of the two listed firms.

Tianjin Printronics has a market value of 2.6 billion yuan (US$386.1 million). Tianjin Zhonghuan has a market capitalization of some 40 billion yuan (US$5.94 billion).

In November, TCL signed a deal with the Tianjin government and led the setup of a 10 billion yuan (US$1.5 billion) fund for high-tech startups.

Talks are reportedly in the preliminary stages.