Trump blocks Chinese deal to buy United States chips with military uses

Trump blocks Chinese acquisition of US semiconductor firm

Trump blocks Chinese acquisition of US semiconductor firm

"Today, consistent with the administration's commitment to take all actions necessary to ensure the protection of US national security, the president issued an order prohibiting the acquisition", Treasury Secretary Steven Mnuchin said in a statement Wednesday.

The Trump administration, citing national security concerns, has blocked Portland-based Lattice Semiconductor Corp.'s acquisition.

The decision prohibited Canyon Bridge, its partner Yitai Capital and Yitai´s parent, the China Venture Capital Fund Corp (CVCF), from purchasing the United States firm, which serves the consumer, communications and industrial markets.

Lattice had said that Canyon Bridge now employs 300 people in OR - and Canyon Bridge has committed to adding 350 more if the takeover deal went through.

The business deal put Trump in the middle of a hot-button issue: Chinese investment in the United States.

Canyon Bridge says it's headquartered in California, but its website also lists a Beijing address and states, "Initial funding for Canyon Bridge comes from limited partners in China".

President Donald Trump on Wednesday blocked attempts by a Chinese state-owned firm to acquire an American semiconductor manufacturer, saying this posed a threat to USA national security.

Lattice manufactures programmable logic devices, which are semiconductors that can be programmed to provide functions similar to chips, the statement said.

Only four deals have been blocked by the president since 1990, according to Bloomberg. Soon after the deal was announced, several lawmakers argued the deal should be killed because the chips are key to certain US military applications.

Lattice executives have maintained that the company does not now supply the military.

Latest News