Philips Sale Draws U.S. Review as Chinese Expand into Chips | White & Case LLP International Law Firm, Global Law Practice
Philips Sale Draws U.S. Review as Chinese Expand into Chips

Philips Sale Draws U.S. Review as Chinese Expand into Chips

Royal Philips NV encountered resistance from the Committee on Foreign Investment in the US (CFIUS) over the planned, $2.8 billion sale of its Lumileds lighting business to Chinese-led investors. The stall is due to the transfer of semiconductor technology involved in making LEDS, which are used in many things including car brake lights, digital cameras and fiber-optic telecommunications systems.

Bloomberg reported that semiconductor transactions often involve advanced technology used in US government or critical infrastructure systems.

"It seems that when you put semiconductors and China in the same sentence, you’re bound to get CFIUS’s attention," said White & Case partner Farhad Jalinous.