According to recent reports, Germany has blocked Chinese stakes in two chipmakers because of security concerns. Read the entire article to learn more about this news piece.
About the blocking of Chinese chipmakers
“We have to look at company takeovers closely, when it comes to important infrastructure or when there is a danger that technology flows to buyers from non-EU countries,” Economy Minister Robert Habeck said in a statement.
The decision had been taken “because the acquisition would have endangered the public order and safety of Germany,” the ministry said in a statement.
“Especially in the semiconductor sector, it is important to us to protect the technological and economic sovereignty of Germany and Europe. Of course, Germany is and will remain an open investment location, but we are not naive either.”
Speaking to reporters after the decision, Habeck said China was making a “deliberate, strategic approach to influencing both knowledge discovery and production control, particularly in the area of semiconductor and microchip manufacturing.”
“The transfer of new micromechanics technologies … from Sweden and significant investments in the Dortmund location would have strengthened semiconductor production in Germany,” Elmos said, adding that it was considering whether to take legal action.
“We have to take a close look at company acquisitions when important infrastructure is involved or when there is a risk of technology flowing to acquirers from non-EU countries,” German economy minister Robert Habeck said at a press conference.
He added that the semiconductor industry in Europe, in particular, needed to guard its “technological and economic sovereignty.”
“All countries, including Germany, should provide a fair, open, and non-discriminatory market environment for the normal operation of Chinese enterprises and refrain from politicizing normal economic and trade cooperation, not to mention protectionism on the grounds of national security,” Zhao told a regular news briefing.
Why has this happened?
Various reports state that this has happened because of the sensitivity revolving around the relations between Berlin and Beijing. The effect of this on China is going to be massive. Even the Biden administration banned the country from buying chips or chipmaking tools without a license. If this goes on, China will not be able to achieve its goal of becoming a tech superpower because they have not only been barred from exporting chips using US technology but they have also been barred from exporting tools used to make them. China’s semiconductor industry might go for a toss if the world scenario remains the same in the future.
The post Germany Blocks Chinese Stake in Two Chipmakers Because of Security Concerns appeared first on TechStory.
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