Germany blocks Chinese media for chip takeover

is reportedly concerned about national security and possible economic dependency

Germany is on a mission to protect its domestic chip industry from takeovers by Chinese companies, according to media reports.

The country’s economy ministry formally blocked a Swedish subsidiary of ’s Sai Microelectronics from buying Dortmund-based chip maker Elmos for 85 million euros, reported on Wednesday.

“We have banned a non-Union investor from entering business projects in Germany,” Economy Minister was quoted as saying. “The reason for this is that law and order in Germany must be protected and critical production areas require special protection,” explained Habeck.

Another acquisition, of the Bavarian company ERS Electronic by a Chinese investor, was also banned by the federal cabinet at Habeck’s request, according to the newspaper, citing its sources.

reported earlier this week that the Ministry of Economy and the government are working on a China strategy that would reduce unilateral dependencies and encourage diversification, as well as protect infrastructure and prevent technology leakage.

Faced with problems with the global semiconductor supply chain, the EU decided to develop its own domestic production. Berlin offered 14 billion euros ($14 billion) in financial support in May to lure manufacturers, and US IT giant decided earlier this year to build a new factory in Germany.

China is one of the world’s largest semiconductor producing countries and according to some estimates, it is expected to manufacture almost 25% of the chips in the world by 2030.

The reported ban on the acquisitions follows a controversial decision last month by Chancellor to sell a minority stake in a terminal in the to Chinese shipping group COSCO. The deal was widely criticized for increasing Germany’s dependence on China at a time when Berlin is trying to wean itself off Russian energy imports.

For more stories about economics and finance visit RT’s business section



Related Posts