Germany’s economy ministry has advised the cabinet to block the sale of a semiconductor chip facility to a Chinese company because it would endanger the country’s security. 

According to Reuters, milder measures, like injunctions, are unsuitable for addressing the risks highlighted.

Elmos said on November 7 that selling its Dortmund plant to Silex Microsystems AB would probably be prohibited at the upcoming cabinet session. 

The Ministry had previously notified the parties that the transaction was likely to be authorized.

According to German media, Silex is a Chinese group Sai Microelectronics subsidiary.

Elmos stated, “after receiving the final assessment,” it will consider taking further actions.

During a trip to Beijing this week, German Chancellor Olaf Scholz stated that it was obvious that China and Germany were not in favor of “decoupling.” 

He also lamented increased difficulties for German companies entering the Chinese market.

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