Trump blocks Chinese acquisition of U.S. semiconductor firm

Trump stops China-backed takeover of U.S. chip maker

Trump stops China-backed takeover of U.S. chip maker

The acquisition of Lattice Semiconductor Corporation, a publicly-traded OR company, by Chinese-owned Canyon Bridge Fund could endanger the U.S. government´s use of sensitive products the company produces, the Treasury Department said in a statement.

The Trump administration has adopted an aggressive stance towards China on trade and national security matters, launching wide-ranging investigations into the national security ramifications of Beijing´s trade in aluminum and steel.

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.

The national security risk included "the potential transfer of intellectual property" to the Chinese-backed company and the "Chinese government's role in supporting this transaction", according to Mnuchin's statement.

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.

The Chinese connection has held the deal up in the federal Committee on Foreign Investment in the United States.

In a statement Wednesday, Canyon Bridge said it is "obviously disappointed" by Trump's decision and called the proposed acquisition "an excellent deal" for Lattice and for "expanding the opportunity to keep jobs in America".

Lattice's stock fell about 1 percent in after-hours trading on news of the blocked sale.

Canyon Bridge says it's headquartered in California, but its website also lists a Beijing address and states, "Initial funding for Canyon Bridge comes from limited partners in China".

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

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