Germany blocks sale of chip factory to China over security fears | CNN Business

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The German government has blocked the sale of one of its semiconductor factories to a Chinese-owned tech company because of security concerns.

Germany’s economic ministry said in a statement that it had prohibited Elmos Semiconductor, which makes chips for the automotive industry, from selling its factory in Dortmund to Silex, a Swedish subsidiary of China’s Sai Microelectronics. The decision had been taken “because the acquisition would have endangered the public order and safety of Germany,” the ministry said in a statement. Silex announced in December that it had signed an agreement with Elmos to buy the factory for €85 million .

Officials limited the planned investment in Hamburger Hafen und Logistik to 24.9%. Several government ministers, including Habeck, has pushed for the deal to be blocked entirely. The tensions have arisen at a difficult time for the German economy, which is sliding into a recession triggered by the crisis over Russian energy. Germany’s manufacturers and exporters are eager to maintain their close relationship with China.

 

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