German Chancellor Olaf Schulz is going to visit China soon, and it is estimated that since it is a factory operating with outdated technologies, no critical IP will be transferred to China
Germany is set to approve its sale by Elmos Semiconductor SE, which owns a chip manufacturing plant in Dortmund, Germany, to Chinese-owned Silex Microsystems, the German daily newspaper reported. Handelsblatt From me to government sources. This despite the opposition of the German intelligence agency and several other agencies
The deal has strong similarities to the takeover of the British Newport Wafer Pub by Nexperia NV, a Dutch company with a Chinese owner.
Almos Automotive Chips Company wishes to become a Fables Chips Company that uses external production houses. In December 2021, the company announced a deal to sell its factory to the Swedish Silex Microsystems AB. at a net purchase price of approximately 85 million euros. Silex was acquired by Chinese investors in 2015 and is currently owned by Sai MicroElectronics Inc. (SMEI).
In December, Alamos stated that the deal is expected to close in the second half of 2022, subject to customary closing conditions and regulatory approvals. The deal can be approved in a few weeks or less. German Chancellor Olaf Schulz is scheduled to visit Beijing on November 4.
The German government understands that Almus’ chip factory in Dortmund is old and that no valuable intellectual property will be transferred to China. According to the reports, the German intelligence services claimed that China is striving for a systematic expansion of the chip production capacity and know-how.
According to the proposed deal, Silks will enter into a long-term agreement to supply diamond wafers until at least 2027. This is standard practice for such plant purchase agreements. What is less acceptable is that Alamos will continue to own the building but will lease the clean room to Silex on the basis of a long-term lease agreement. Elmos will also provide the infrastructure, services, IT support and licenses to Silex based on separate lease and service agreements. The testing of integrated circuits will be left to Elmus.
Newport Wafer Pub is already owned by Nexperia but more than a year after the deal was made the UK government is considering canceling the deal or imposing restrictions on Nexperia.