Germany blocks Chinese investment in domestic semiconductor companies | Reuters

Germany has blocked Chinese investment in two domestic semiconductor makers. FILE PHOTO: February 25, 2022. REUTERS/Florence Lo/Illustration

BERLIN (Reuters) – Germany has blocked Chinese investment in two German chip makers, the government said on Thursday. Germany’s Chinese investment has raised concerns about the outflow of key technology to China and national security concerns.

One of the deals blocked by the government was the takeover of the Elmos semiconductor factory by the Swedish company Silex, a subsidiary of China’s Sai Microelectronics. Emos is based in Dortmund.

Another deal is a Chinese investment in ERS Electronic in Bavaria, a government source told Reuters. A spokesperson for ERS said the company had no plans to sell the company but were considering the option of receiving investment from a Chinese private equity firm.

German Minister for the Economy and Climate Protection Harbeck said in a statement that acquisitions would be carefully screened if they related to critical infrastructure or if there was a risk of technology flowing out of the European Union, stating that “It is important to protect the technological and economic sovereignty of Germany and Europe, especially in the semiconductor sector. Of course, Germany remains open to investment, but not naive.”

A Chinese foreign ministry spokesman told reporters at a regular briefing that he was not aware of the details of Elmos and ERS, but added: We must provide a fair, open and non-discriminatory market environment, and refrain from politicizing economic cooperation and common trade. , not to mention protectionism on national security grounds.” .