Germany blocks Chinese-owned firm’s chip factory deal

BERLIN: The German government on Wednesday blocked the sale of a chip factory to a Swedish subsidiary of a Chinese company, a decision that comes as Berlin grapples with its future approach to Beijing.

The move by the Cabinet follows a recent compromise over a Chinese shipping firm’s investment in a German container terminal and a visit to Beijing last week by Chancellor Olaf Scholz.

The government’s red light was anticipated after German company Elmos said this week that it had been informed the 85 million-euro (dollar) sale of its chip factory in Dortmund to Silex Microsystems AB of Sweden would likely be prohibited. Silex is owned by Sai Microelectronics of China, according to German media.