Trump Prohibits Chinese Corporation From Acquiring US Semiconductor Company

Trump reached on this decision after considering several factors and a review of a recommendation from the Committee on Foreign Investment in the US. Reuters File

Trump blocks Chinese deal to buy US chips with military uses

President Trump has stopped the takeover of an American chip maker by a private equity firm with ties to China.

The decision prohibited Canyon Bridge, its partner Yitai Capital and Yitai´s parent, the China Venture Capital Fund Corp (CVCF), from purchasing the USA firm, which serves the consumer, communications and industrial markets.

"Today, consistent with the administration's commitment to take all actions necessary to ensure the protection of USA national security, the president issued an order prohibiting the acquisition", Treasury Secretary Steven Mnuchin said in a statement Wednesday.

Trump's order addresses the potential risk such a transaction may have on US national security, US Department of Treasury Secretary Steven Mnuchin said in a separate press release on Wednesday.

American presidents are empowered to stop the sale of domestic companies to foreign buyers if there is a potential threat to national security - either because of what the US company does, or due to the nature of the would-be buyer.

The business deal put Trump in the middle of a hot-button issue: Chinese investment in the United States.

Lattice had said that Canyon Bridge now employs 300 people in OR - and Canyon Bridge has committed to adding 350 more if the takeover deal went through.

In a statement, Canyon Bridge said it was "disappointed in Trump's decision to "forgo what we believe to be an excellent deal for Lattice's shareholders and its employees by expanding the opportunity to keep jobs in America".

Reps for Lattice did not immediately respond to a request for comment.

Lattice's stock fell about 1 percent in after-hours trading on news of the blocked sale. Limited, whose investors are state-owned enterprises.

Chinese investment into USA firms so far in 2017 includes 83 deals worth about $25 billion, according to research firm Rhodium Group.

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