President Trump has blocked Canyon Bridge Capital Partners LLC from acquiring Lattice Semiconductor Corporation, using the authority granted by the Exon–Florio Amendment. Lattice Semiconductor makes programmable logic devices including field programmable gate arrays (FPGAs):
President Trump on Wednesday blocked a China-backed investor from buying an American semiconductor maker over national security concerns, a rare move that could signal more aggressive scrutiny of China's deal-making ambitions. The deal for Lattice Semiconductor has provided a test of the president's economic and diplomatic relationship with China.
[...] The White House said on Wednesday that it prevented the acquisition of Lattice Semiconductor, in part because the United States government relies on the company's products. The integrity of the semiconductor industry, it said, was vital.
The White House also raised concerns over the buyer's close ties to Beijing. The investment group included China Venture Capital Fund Corporation, which is owned by state-backed entities, the White House said.
The decision could foretell trouble for other Chinese deals under review by the Committee on Foreign Investment in the United States, a multiagency group that examines takeovers of American companies by foreign buyers and makes recommendations to the president. The group, which operates largely in secrecy, is also looking at the proposed purchase of MoneyGram International by Ant Financial, an affiliate of the Chinese technology giant Alibaba Group.
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The company that failed to acquire Lattice Semiconductor will acquire Imagination Technologies instead:
Imagination Technologies Group Plc agreed to be acquired by China-backed private equity firm Canyon Bridge Capital Partners.
Canyon Bridge said it will pay 182 pence a share in cash, or more than 500 million pounds ($675 million), for the U.K. designer of graphics chips. That's 42 percent more than Imagination's closing share price on Friday.
As part of the deal, Imagination will sell its U.S.-based embedded processor unit MIPS to Tallwood MIPS, a company indirectly owned by California-based investment firm Tallwood Venture Capital, Canyon Bridge said.
Canyon Bridge was keen to structure a bid to avoid scrutiny from U.S. regulators, Bloomberg reported earlier this month.
Earlier in September President Donald Trump rejected a takeover by Canyon Bridge of U.S. chipmaker Lattice Semiconductor Corp., just the fourth time in a quarter century that a U.S. president has ordered a foreign sale of an American firm stopped for security reasons.
Also at The Verge, AnandTech, and Financial Times.
Previously:
Related:
- Imagination Technologies Group Up for Sale
- Imagination Technologies will Continue to Make GPUs after Losing its Biggest Customer
Qualcomm's board members, including several seats controlled by Broadcom, were set to vote on Broadcom's acquisition attempt on Tuesday. However, the annual shareholder meeting has been postponed for 30 days by the Committee on Foreign Investment in the United States:
Broadcom Ltd. is on course to win all six of the seats it's seeking on Qualcomm Inc.'s board, giving it a majority to push forward with its hostile takeover even as a U.S. government panel forced a delay of the final tally amid concerns about the deal's threats to national security.
Based on a count of more than half of the votes already cast, Broadcom would win a majority of Qualcomm's board seats, according to information obtained by Bloomberg. If that result holds up when the final vote takes place, Broadcom would have a mandate to overturn Qualcomm management's opposition to the $117 billion deal. Representatives for Broadcom and Qualcomm declined to comment.
The Committee is taking preemptive action this time:
The panel, the Committee on Foreign Investment in the United States, or Cfius, typically works behind closed doors and reviews deals only after they are announced. In the case of Qualcomm, the panel, which includes representatives from multiple government agencies, is looking at the acquisition before it is complete. In practice, reviews by Cfius often lead to the demise of deals.
[...] Already, Cfius has taken a more proactive role, blocking several major deals by Chinese buyers in recent months. Among them were proposed acquisitions of MoneyGram, a money transfer company, and Lattice Semiconductor.
Previously: President Trump Blocks Acquisition of Lattice Semiconductor
Broadcom Raises Bid for Qualcomm to $121 Billion
Broadcom's quest to acquire Qualcomm has come to a screeching halt:
President Trump on Monday blocked Broadcom's $117 billion bid for the chip maker Qualcomm, citing national security concerns and sending a clear signal that he was willing to take extraordinary measures to punctuate his administration's increasingly protectionist stance. In a presidential order, Mr. Trump said there was "credible evidence" that led him to believe that if Singapore-based Broadcom were to acquire control of Qualcomm, which is based in San Diego, it "might take action that threatens to impair the national security of the United States."
[...] The move follows one by the Committee on Foreign Investment in the United States, which typically works behind closed doors and reviews deals only after they are announced, earlier this month to stall Broadcom's bid because of national security concerns. [...] The president said his decision had been based on the review by the committee, which focused on how Broadcom's purchase of Qualcomm might affect next-generation high-speed mobile networks known as 5G. The panel said that the leadership of Qualcomm, which makes wireless chips and also licenses key wireless patents, was too important to put into hands of a company with links to China. The committee argued that economic leadership in 5G was also a national security interest.
The Committee on Foreign Investment in the United States has just put a lot of companies on notice.
Previously: Broadcom's Hostile Takeover Attempt of Qualcomm Delayed by U.S. Government Panel
Broadcom Pleads its Qualcomm Case to Congress
Related: President Trump Blocks Acquisition of Lattice Semiconductor
U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying
U.S. Rejects Chinese Takeover of the Chicago Stock Exchange
(Score: -1, Troll) by Anonymous Coward on Thursday September 14 2017, @08:53PM (11 children)
So he has no problem with US companies screwing over the little guy, but at least he tries to keep the crimes in the family?
Oh right, they aren't crimes. We updated our laws so that Corporations can do whatever they want. Legal like. Nothing to see here, please kill yourself once your productivity levels drop below average. It also helps with over population! Our new green initiative!
Holy crap, maybe Soylent Green was really a message from the future! Green washing will one day turn us into cannibals!!!
(Score: 0) by Anonymous Coward on Thursday September 14 2017, @09:19PM (3 children)
What the heck are you talking about?
(Score: 2) by Adamsjas on Thursday September 14 2017, @11:42PM (2 children)
Sure, AC, go ahead and pretend you are two different peoeple.
(Score: 0) by Anonymous Coward on Friday September 15 2017, @12:10AM
Lol original ac here letting you know to tone down the paranoia. Other ac sounds like a troll trying to bait an argument.
(Score: 2) by Gaaark on Friday September 15 2017, @02:49AM
It's AC's allll the way down!
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
(Score: 5, Interesting) by bob_super on Thursday September 14 2017, @09:21PM (2 children)
Would you like to learn about my new silk-lined tinfoil ? It comes in Yellow and Brown hues.
Lattice sells a particular line of chips, which are very popular with people building for extreme environments. The US military and its suppliers would prefer to ensure that those chips, and the missiles and satellites they control, are free from outside interference.
Bonus: it probably saves US jobs.
(Score: 5, Insightful) by NewNic on Thursday September 14 2017, @09:53PM
They would also prefer that Lattice's customers don't talk to a foreign company, and give away secrets through the requirements they place on new chips from Lattice.
lib·er·tar·i·an·ism ˌlibərˈterēənizəm/ noun: Magical thinking that useful idiots mistake for serious political theory
(Score: 3, Interesting) by RamiK on Thursday September 14 2017, @10:23PM
Unless, of course, Gowin will now receive a fat check from the PRC to develop and flood the market with similar FPGA\ASICs.
compiling...
(Score: -1, Troll) by Anonymous Coward on Thursday September 14 2017, @10:00PM (3 children)
But but but, what about the LGBT community. Evil Trump, no consideration for minorities.
(Score: 2) by realDonaldTrump on Friday September 15 2017, @02:46AM (2 children)
Lesbians are terrific, I could look at them all day! And trust me, I have. Sometimes I have. The womanly ones and not so womanly, all very hot. And the gays are OK. They take a lot of care with their hair, their clothes, the way they smell. Always good hygiene, always well groomed. Which in a man are fabulous qualities. And the trans are very welcome in my buildings. And on my courses. In whichever restroom they want. The one they feel is appropriate. But I just can't have them in my military. Which has a lot, a lot of wars to fight. And can't be doing all that surgery. Putting the big fake tits, or the big fake cocks, on those who want or need them. Very expensive and we can't keep doing that. There are lots of terrific places for the transgender. Just not in my military. Maybe when we finish up the wars, we can make a different deal. In which my military and the transgender will both win. And maybe we can make a different deal about Lattice Semiconductor. I told them "no" but they can reapply. They can reapply, but I'll give them a hint. If China is not going to solve North Korea, we will. China has great influence over North Korea. And China will either decide to help us with North Korea, or they won’t. And if they do that will be very good for China, and if they don’t it won’t be good for anyone. That is all I am telling you. 🇺🇸
(Score: 1) by Ethanol-fueled on Saturday September 16 2017, @01:29AM (1 child)
It's not the tranny part that all my ex-military buddies hated, it's the fact that along with trannies and forced integration of women in non-traditionally-female fields came PC/sensitivity/diversity bullshit that will now get you hauled off to the brig if not forced out just for making dick jokes. Having to carry the females' rucks for them during 20 mile road-marches and accommodate their menstrual needs was also was a bitter pill to swallow.
Now, the Air Force and Navy have always been limp-wristed sissies so that is to be expected of them. But my bros who are and were in the Army and Marines are describing PC horrors beyond my imagination. Damn shame, too, because if it weren't for PC bullshit they would have stayed in.
And Americans wonder why all the vets with combat experience are bailing at exponential rates.
(Score: 2) by realDonaldTrump on Saturday September 16 2017, @03:55AM
A woman is bleeding from her whatever and she asks you to accommodate her needs, you can tell her "no." You can always say "no." But a lot of guys would say "yes." It's an option. An option military guys, frankly, didn't always have. And if the other options are 20 miles away, maybe you say "yes." Maybe I would say "yes." But if she wants it licked, that's not happening. I'll tell you, it's not happening.
(Score: 5, Insightful) by Anonymous Coward on Thursday September 14 2017, @10:10PM (3 children)
Next on the TODO list:
When you outsource your IT to a foreign country, you open your entire network to a foreign government. The cost savings (maybe even subsidized by foreign intelligence services) are great for the CEO's short-term thinking, but may doom the American company. This needs to stop.
Today, most companies are prohibited from discriminating based on "national origin". That means a foreign government with a major reputation for spying can simply send over a spy with ideal qualifications for a job, have the spy apply for the job, and not face any resistance. The company isn't allowed to reject obvious security risks. This is exactly backwards; such people should be prohibited from taking jobs that would provide access to computer networks (an open ethernet port for example) that contain American proprietary information.
Getting trade secrets off of internet-connected computers would be another good step. No, that firewall won't protect you.
(Score: 0) by Anonymous Coward on Thursday September 14 2017, @10:28PM (1 child)
Why?
(Score: 2) by Bot on Thursday September 14 2017, @11:54PM
Because Frankie Valli said so.
Account abandoned.
(Score: 5, Insightful) by bob_super on Thursday September 14 2017, @10:29PM
Why would your firewall protect your data? The CEO said "push it all to the cloud".
(Score: 3, Insightful) by andersjm on Friday September 15 2017, @05:43AM (1 child)
He's building a wall against the world, just like he promised. Only it's a metaphorical one.
When he said the wall would be made out of concrete, I guess he meant metaphorical concrete.
(Score: 2) by realDonaldTrump on Saturday September 16 2017, @03:57AM
The WALL, which is already under construction in the form of new renovation of old and existing fences and walls, will continue to be built. #MAGA 🇺🇸