Chinese firm scraps German tech deal after US block

AFP, BEIJING: A Chinese company yesterday said it had scrapped plans to purchase German semiconductor equipment maker Aixtron after US President Obama blocked the deal on security concerns.
The Chinese government-backed Grand Chip Investment said its offer could no longer be fulfilled after Washington rejected the inclusion of Aixtron’s US unit over fears it could put sensitive technology with potential military applications in Chinese hands.
In a statement released on its website, the company said the block meant that the conditions of the deal “no longer can be fulfilled”. “Any contracts based on the acceptance of the takeover offer will not become effective.”
The failure of the proposed 670-million-euro ($714-million) takeover comes at a time of growing unease in the West about a recent slew of Chinese takeovers, often by state-backed companies.
The death knell for the Aixtron deal came last week after a review by the Committee on Foreign Investment in the United States (CFIUS) chaired by Obama found that the national security risks posed by the deal were too great.
In a statement on Friday, the US Treasury said Aixtron’s expertise in technology, which is key to making advanced compound semiconductors used for LED lighting, lasers and solar cells, also has military applications.  Washington does not want to see such technology end up in the hands of a Chinese government-backed company. The Treasury said Aixtron’s US business was an important contributor to that technology.
The troubled deal had also come under scrutiny in Germany where Chinese firms have bought a record number of tech companies this year, sparking criticism of homegrown know-how and intellectual property being sold off to Beijing.

Chinese firm scraps German tech deal after US block

AFP, BEIJING: A Chinese company yesterday said it had scrapped plans to purchase German semiconductor equipment maker Aixtron after US President Obama blocked the deal on security concerns. The Chinese government-backed Grand Chip Investment said its offer could no longer be fulfilled after Washington rejected the inclusion of Aixtrons US unit over fears it could put sensitive technology with potential military applications in Chinese hands. In a statement released on its website, the company said the block meant that the conditions of the deal no longer can be fulfilled. Any contracts based on the acceptance of the takeover offer will not become effective. The failure of the proposed 670-million-euro ($714-million) takeover comes at a time of growing unease in the West about a recent slew of Chinese takeovers, often by state-backed companies. The death knell for the Aixtron deal came last week after a review by the Committee on Foreign Investment in the United States (CFIUS) chaired by Obama found that the national security risks posed by the deal were too great. In a statement on Friday, the US Treasury said Aixtrons expertise in technology, which is key to making advanced compound semiconductors used for LED lighting, lasers and solar cells, also has military applications. Washington does not want to see such technology end up in the hands of a Chinese government-backed company. The Treasury said Aixtrons US business was an important contributor to that technology. The troubled deal had also come under scrutiny in Germany where Chinese firms have bought a record number of tech companies this year, sparking criticism of homegrown know-how and intellectual property being sold off to Beijing.