The German government is poised to block the sale of a semiconductor factory to a Chinese-owned company, a decision that comes just days after Olaf Scholz made his first visit as chancellor to Beijing.
A formal decision on the sale of Dortmund-based Elmos’s wafer plant is expected to be announced by Berlin following a cabinet meeting on Wednesday.
The decision to block the sale highlights increasing concerns over the security of western semiconductor technology and supply chains.
“The Federal Ministry for Economic Affairs and Climate Protection (BMWK) today informed the parties involved that . . . the sale of Elmos wafer production to Silex Microsystems is expected to be banned,” Elmos said on Tuesday morning.
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