U.S. blocks China buyout of Lattice Semi

U.S. blocks China buyout of Lattice Semi

Business news |
By Rich Pell

The Committee on Foreign Investment in the United States (CFIUS) referred the deal to the US President for a decision, having been unable to come to an agreement with the parties on mitigation measures. 

Lattice said that in its view the deal was in the interest of shareholders, customers, employees and the United States and that it was disappointed that it had been unable to persuade CFIUS that its mitigation proposal would provide enough protection for national security. The deal caused a year of in-fighting amoung the shareholders of Cypress Semiconductor as the chairman of Lattice at the time was heavily involved with the deal.

“We will continue to focus on initiatives that will contribute to Lattice’s long-term success, specifically in areas where our affordable, low power, small form factor devices create advantages. Additionally, we remain committed to achieving profitable growth by extending processing and connectivity solutions beyond our core business. Lattice’s future remains bright,” said Darin Billerbeck, Lattice CEO, in the statement.

Lattice announced the deal in November 2016 but has struggled to move it forward while it has been under scrutiny from CFIUS, which has in recent times been more inclined to block deals, particularly where Chinese interests have been seeking to take positions in strategic sectors such semiconductors.

President Obama followed the CFIUS recommendation and prohibited the acquisition of the US business of metalorganic chemical vapor deposition (MOCVD) equipment vendor Aixtron SE (Herzogenrath, Germany) by China-controlled Grand Chip Investment GmbH.

Related links and articles:

President Trump’s order is here:

President Trump to rule on Lattice’s China deal

Lattice Semi to be sold to China-backed private equity

Report: US mulls ramping semiconductor protection


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