Skip to main content

Clifford Chance

Clifford Chance

Briefings

U.S. President Trump Uses CFIUS To Bar Chinese-Backed Firm From Acquiring U.S. Microchip Maker

17 September 2017

On September 13, 2017, President Trump issued an Order barring Chinese-backed private equity firm Canyon Bridge from purchasing U.S.-based Lattice Semiconductor Corp., a microchip maker.  In blocking the transaction, the Order stated that the purchase potentially could "impair the national security of the United States."  This Order effectively upheld a decision of the Committee on Foreign Investment in the United States, the U.S. government Committee which examines and evaluates transactions for potential national security threats.   The underlying CFIUS decision as well as the President's Order again signaled to China as well as the business community that the Trump Administration will continue to closely scrutinize takeover deals – especially those involving China -- that involve technologies with perceived national security implications and military applications.  This action serves as a reminder that transactional parties, early on in the process, should identify, assess and devise a practical strategy for managing the risks of a CFIUS review.

Download PDF