Germany blocks sale of chip factory to China over security fears

Germany blocks sale of chip factory to China over security fears

Invalid Date by CNN

Key Facts

  • London/Berlin CNN Business — 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 transfer of new micromechanics technologies … from Sweden and significant investments in the Dortmund location would have strengthened semiconductor production in Germany,” Elmos said, adding that it was considering whether to take legal action.
  • Only last week, Chancellor Olaf Scholz met with Chinese leader Xi Jinping in the first visit by a G7 leader to Beijing in roughly three years, a trip designed to shore up export markets as Germany’s ties with Russia — once its biggest supplier of natural gas — continue to unravel.

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