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Germany bans company from selling semiconductor plant to China

Nov 10, 2022

The decision of the German government concerns semiconductor companies Elmos and ERS Electronic. According to officials, this measure is aimed at protecting the "economic sovereignty" of Germany.


The German government has banned the sale of German companies Elmos and ERS Electronic, which produce semiconductor products, to Chinese investors. Officials attributed this decision to the security of Germany and its critical infrastructure.

"In the field of semiconductors, it is particularly important for us to protect the technological and economic sovereignty of Germany and Europe," Federal Minister of Economics Robert Habeck said after the government on Wednesday, November 9.
"Germany has been and remains an open place for investment, but at the same time we are not naive," he stressed.

Elmos, which manufactures products mainly for the automotive industry, announced plans to abandon production at its main plant in Dortmund at the end of 2021. It was assumed that the plant and the material and production base would be acquired for 85 million euros by Silex Microsystems AB, which is registered in Sweden but fully owned by the Chinese concern Sai Microelectronics. Subsequently, Elmos management reported that the German government is likely to prohibit the transfer of production to Silex Microsystems AB.

Author - Serhii Kolomiets, 10/11/2022

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