Posted in:
Berlin (AFP) – The German government on Wednesday banned a Swedish company owned by a Chinese group from buying a German semiconductor factory, the German economy ministry announced.
Speaking of the Swedish company Silex, owned by the Chinese group Sai Microelectrics, to buy a plant of the German company Elmos, German Economy Minister Robert Habeck told reporters: “China is a trading partner and must remain so.” .
“However, we must not be naive and we must see if commercial and market interests are likely to be used in the politics of influence, against the interests of the Federal Republic of Germany,” he added.
Berlin refused to complete the transaction because “the purchase (the factory) would jeopardize order and security in Germany”.
It noted that other approaches to risk mitigation, including permitting acquisitions under certain conditions, “have not been able to eliminate the identified risks.”
Concerns are growing in European economic power over its over-dependence on Beijing and the fact that vital German structures fall into the hands of Chinese companies linked to Beijing.
The Russian invasion of Ukraine, which resulted in a decline in essential gas supplies to Europe, has exacerbated fears.
The semiconductor industry is closely monitored as it produces key components used in the industrial sector, from manufacturing consumer electronics to manufacturing battery-powered vehicles.
Earlier this year, the European Union unveiled a multi-billion dollar “chip law” aimed at doubling the European semiconductor market share and relying on supplies from Asia.
Late last year, Elmos, which mainly manufactures components for the automotive industry, said it wanted to sell the manufacturing plant at its headquarters for 85 million euros.
Germany is also preparing to halt a Chinese investor’s plan to acquire ERS Electronic in Bavaria, a company that supplies cooling technology to chip makers, the Handelsblatt newspaper reported Wednesday.
Habeck said he could not comment on the matter because it was a “trade secret”.
Habeck from the Green Party recently discussed Chinese investment in Germany with German Chancellor Olaf Scholz.
© 2022 AFP
