Germany 'Likely' to Block Chinese Acquisition of Chip Company, German Firm Says
In a reversal, Germany now plans to block the purchase of Dortmund-based semiconductor company Elmos by Sweden’s Silex, a subsidiary of China's Sai Microelectronics, Elmos said this week. Elmos said Germany’s Federal Ministry of Economics and Climate Protection had previously told both parties that the transaction was “likely to be approved,” according to an unofficial translation of a Nov. 7 statement. Elmos said the deal will “probably be prohibited in the upcoming cabinet meeting on November 9, 2022.”
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“In the event of the prohibition, the sale of the wafer production to Silex Microsystems AB cannot be completed,” Elmos said. “After receiving the decision, the parties involved will examine it in detail and then decide on the further steps.” Germany’s intelligence ministry has reportedly warned that the deal could increase Germany’s dependence on China's semiconductor market (see 2210310015).