German regulator set up a card Global Wafer 5 billion yuan acquisition of interbank companies blocked

Financial Associated Press (Shanghai, editor Zhao Hao) news, local time on Monday (February 2), the German Ministry of Economics failed to approve the silicon wafer giant Global Wafers (Global Wafers) acquisition of Siltronic within the specified time, which means that the transaction worth 4.35 billion euros (nearly $5 billion) can not go as planned.

Siltronic is a silicon wafer manufacturer based in Germany and headquartered in Munich. A global wafer acquisition would create the world's second-largest 300mm wafer manufacturer, after Japan's Shin-Etsu, a deal approved by Chinese regulators on Jan. 21.

(Source: Universal Wafers)

However, Universal Wafer was unable to obtain approval from the German government on January 31. According to a document, "Global Wafer proposed extremely long-term compensation measures and commitments to the German government during the review process, and repeatedly expressed its willingness to discuss alternatives with the German government." ”

"Despite Global Wafers' efforts to reach a mutually agreeable solution, coupled with its long and successful track record in Europe, Universal Wafers is deeply sorry for this outcome. Global Wafers will continue to work closely with customers in Europe, including many of those who supported the acquisition. Universal Wafers should also pay a €50 million transaction termination fee to Sitronic.

Europe's science and technology protection policy

A spokesman for the German Ministry of Economics said that "as part of the investment review, it is not possible to complete all the necessary review steps in such a short period of time." ”

US business media CNBC believes that the main reason for the failure of the transaction is that all countries are currently strengthening their "technical sovereignty", which hopes to get rid of their dependence on other countries in key technologies such as semiconductors. Europe is currently heavily dependent on the United States and Asia, which has industry "big Macs" such as Samsung, TSMC and Intel.

Abishur Prakash, co-founder of consultancy Center for Innovating the Future, told the media that since 2016, Germany and the European Union have begun to worry about their "erosion of tech leadership."

European governments have taken a different approach to their chip companies, Prakash added, "Having a self-reliant European chip industry is key, whatever the FUTURE goals of the EU, from robotics to space to the quantum realm, the EU needs advanced semiconductors, and it doesn't want to be at the mercy of other countries in this area." ”

Germany is home to chipmakers such as Infineon, and after a global chip shortage hurt its automotive industry, Germany became increasingly wary of the global supply chain of semiconductors. Germany's economy ministry said it would again conduct an investment review if Global Wafer chose to make a new acquisition attempt.

Other chip-related M&A deals are also under investigation by governments and regulators. The most notable of these is Nvidia's $40 billion acquisition of British chip designer Arm, which is currently owned by Japan's SoftBank.

Critics worry that NVIDIA could limit Arm's business and lead to global price increases, while also reducing industry innovation. But NVIDIA argues that the deal will lead to more innovation, and arm will not only remain independent, but also benefit from the investment.