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UPDATE 1-Microchip gets China antitrust approval to buy Microsemi

(Adds details, background, share movement)

May 15 (Reuters) - Microchip Technology Inc said on Tuesday it has received antitrust approval from China to buy rival Microsemi Corp, clearing a major hurdle to the $8.35 billion deal.

Microchip had offered to buy Microsemi, the largest U.S. commercial supplier of military and aerospace semiconductor equipment, in March.

Microsemi shares rose 1.3 percent to $68.60, just shy of the offer price of $68.78. Shares of Microchip were up 2.3 percent at $95.65 in premarket trading.

The clearance for the deal from China's Ministry of Commerce (Mofcom) comes days after U.S. President Donald Trump decided to revisit penalties for Chinese company ZTE Corp for flouting U.S. sanctions on trade with Iran.

Mofcom approval is seen as a major hurdle to the deal, which has already received antitrust clearance in the United States.

Microchip on Tuesday also received antitrust clearances from the Japan Fair Trade Commission, the Philippine Competition Commission, the Austrian Federal Competition Authority and the German Federal Cartel Office.

However, Qualcomm's proposed $44 billion takeover of rival NXP Semiconductors is yet to see a breakthrough in China.

Microchip, which makes analog chips for carmakers and industrials, expects the merger to be completed in late May or early June. (Reporting by Arjun Panchadar in Bengaluru; Editing by Arun Koyyur)