Trump blocks Chinese acquisition of US semiconductor firm

Citing national security concerns, President Trump on Wednesday blocked a Chinese-backed investor from buying Lattice Semiconductor Corp. — only the fourth time a president has stopped a foreign takeover in 27 years.

The would-be buyer, Canyon Bridge Capital Partners LLC, is a private-equity firm backed by a Chinese state-owned asset manager, Bloomberg reported.

“Consistent with the administration’s commitment to take all actions necessary to ensure the protection of US national security, the president issued an order prohibiting the acquisition,” Treasury Secretary Steve Mnuchin said in a statement.

The Trump administration has maintained the US’s tough stance against Chinese takeovers of American businesses even as it seeks the country’s help to resolve the North Korean nuclear crisis.

Other Chinese deals under review include MoneyGram International Inc.’s proposed sale to Ant Financial, the financial-services giant controlled by Chinese billionaire Jack Ma.

The government is also examining an agreement by Chinese conglomerate HNA Group Co. to buy a stake in SkyBridge Capital LLC, the fund-management company founded by Anthony Scaramucci, who was briefly Trump’s White House communications director, then news service reported.

Trump’s move builds on years of US opposition to China’s efforts to bolster its chip industry by buying American technology.

China, the world’s largest chip market, has been on the hunt for acquisitions in the field as it looks to build a domestic supply and rely less heavily on imports, as the $300 billion global semiconductor industry undergoes its biggest wave of consolidation.

US officials worry that China’s investment push could threaten the competitiveness of American industry and give Beijing access to cutting-edge technology with commercial and military applications.

The national-security risks posed by the deal included “the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States government, and the use of Lattice products by the United States government,” the White House said.

Lattice, based in Portland, Oregon, went to uncommon lengths in hopes of saving its $1.3 billion sale to Canyon Bridge, which was first announced in November.

source: AFP