Security fears kill chip firm’s takeover

Source: Xinhua | 2017-02-18

GERMAN semiconductor maker Infineon’s planned takeover of American firm Wolfspeed will not go ahead, the US company’s owner Cree said, due to “national security concerns” from US authorities.

“Cree and Infineon have been unable to identify alternatives which would address the national security concerns of the Committee on Foreign Investment in the United States,” Cree said in a statement.

Infineon had hoped to buttress its business in radio frequency and power solutions with the Wolfspeed acquisition, as the semiconductor sector goes through a bout of consolidation.

But prospects the tie-up would come to fruition receded after the committee made its opposition known earlier in February.

The committee found the US$850 million proposed takeover announced in July presented a national security risk.

It did not propose a way for the deal to go ahead while satisfying its concerns.