German economy ministry favours blocking Chinese takeover of Elmos' chip production - sources

Elmos Semiconductor SE

08/11/2022 09:00

BERLIN, Nov 8 (Reuters) - Germany's economy ministry has
recommended to the cabinet that the government block the Chinese
takeover of Elmos'  ELGG.DE  chip factory, saying it would pose
a threat to national security, ministry sources said on Tuesday.
    Milder measures, such as an injunction, are not suitable for
addressing the identified dangers, added the sources.
    Elmos said on Monday that the German government would likely
block the sale to competitor Silex, a Swedish company that is a
subsidiary of Chinese group Sai Microelectronics  300456.SZ .
    The sources said the economy ministry and the government are
currently working on a China strategy focused on reducing
one-sided dependencies and encouraging diversification, as well
as protecting infrastructure and preventing technology leakage.
 (Reporting by Markus Wacket, Writing by Miranda Murray
Editing by Paul Carrel)
 ((Miranda.Murray@thomsonreuters.com;))