Thursday, 14 September 2017

Donald Trump blocks Chinese acquisition of US semiconductor firm

Washington: President Donald Trump on Wednesday blocked attempts by a Chinese state-owned firm to acquire an American semiconductor manufacturer on national security concerns, drawing a rebuke from Beijing.

The acquisition of Lattice Semiconductor Corporation, a publicly-traded Oregon company, by Chinese-owned Canyon Bridge Fund could endanger the US government`s use of sensitive products the company produces, the Treasury Department said in a statement.

Trump`s predecessor, Barack Obama, had also intervened to prevent a similar deal involving semiconductors on security concerns last year.

Chinese government-backed Grand Chip Investment scrapped plans to buy German semiconductor equipment maker Aixtron in December after Washington rejected the inclusion of Aixtron`s US unit over fears it could put sensitive technology with potential military applications in Chinese hands.

"It is important to note that the US government has been particularly concerned with foreign investment, particularly Chinese investment, into the US semiconductor industry for years," said Lawrence Ward, a partner at the international law firm Dorsey & Whitney in global business focusing on US national security law.

"It is likely premature to think that the Trump administration is taking a hawkish approach to Chinese investment across all industry sectors but, of course, only time will tell," Ward said.

Source:-Zeenews

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