China Germany bans sale of company to Chinese investors

China Germany bans sale of company to Chinese investors

The German government bans the sale of wafer production by Dortmund chipmaker Elmos and Bavarian company ERS Electronic to Chinese investors. According to Portal information from government circles, the German federal cabinet made that decision on Wednesday.

Elmos itself announced on Monday night that the sale of Elmos’ wafer production to Sweden’s Silex Microsystems AB would likely be banned. Silex is a subsidiary of China’s Sai Microelectronics. Wafers are silicon wafers for chip production. ERS Electronic, on the other hand, claims to offer thermal test methods for semiconductor production.

Unlike the recent entry of the Chinese state-owned shipping company Cosco into an operating company at a terminal in the port of Hamburg, the government’s decision was indisputable. The background is also that the US government wants to restrict China’s access to semiconductor technology. However, no high-tech wafers for state-of-the-art chips are produced at the Dortmund factory. Elmos develops, produces and sells semiconductors primarily for use in automobiles.

China’s new strategy

As early as Tuesday, the German Economy Ministry said that the acquisition of Elmos posed a threat to public order and security in Germany. Therefore, a ban was proposed to the federal cabinet. It was also pointed out that the German government was already working on a new strategy for China. Investments from the country are still welcome in principle, but there are cases that can put security at risk. “A particularly close eye is needed, for example, if infrastructure is affected or if there is a risk of technology drain.” Currently, 17 testing procedures are running in accordance with the national foreign trade law with the participation of Chinese companies from various industries. 44 transactions with third country stakeholders were examined.

During a visit to Beijing last Friday, Chancellor Olaf Scholz announced that he wanted to reduce dependence on China. However, the country remains an important economic partner. (apa/Portal)