Chip Manufacturing Battles in Europe vs. China • Registration. | So Good News

Europe is at the center of two conflicts as China seeks to boost domestic chip manufacturing capacity.

German chipmaker Elmos Semiconductor says it has been notified by the government that it plans to sell its wafer fab to China-owned Silex Microsystems for $85 million. Silex Microsystems is a Dutch subsidiary of China’s Sai Microelectronics.

Elmos, which focuses on automotive chips, said the move came as a surprise because Germany’s Ministry of Economy and Climate Protection had indicated that the sale was “most likely to be confirmed.”

Germany is reportedly seeking to protect Western semiconductor technology and supply chains from Chinese interests. Financial Times. German Economy Minister Robert Habeck said China should build ties with China on a broader level, but Germany needs to exercise particular sensitivity when dealing in important sectors such as the semiconductor industry.

“That means there are higher hurdles to clear Chinese investment (in those sectors), and we should assume that’s the case for Elmos,” the newspaper reported.

Germany’s decision comes as the country’s chancellor Olaf Scholz, after his first visit to Beijing, is expected to become official at a cabinet meeting on Wednesday. Before leaving Scholz said Germany needed to reduce its reliance on China in areas that were “dangerous” and “one-sided” by screening investments and expanding the country’s supply chain.

Scholz clearly disagrees with that view, though. It took its popular decision to approve the sale of shares in the port of Hamburg to Chinese shipping company Cosco.

China warns Taiwan over high-tech investments in Lithuania

The news of the blocked wafer sales in Germany comes as the Chinese government issued a warning to Taiwan over plans to invest in chip manufacturing and other high-tech industries in Lithuania.

China is ready to cooperate with other countries to oppose the efforts to gain independence. Reuters.

The notice comes after Taiwan announced a $3.5 million investment in Lilit, a Lithuanian company focused on ultra-fast laser technology. The investment is the first of three planned investments totaling nearly $10 million in the European country’s high-tech industries.

In addition, Taiwan’s Institute of Industrial Technology and Research plans to work with electronics maker Teltonika to develop chip manufacturing capabilities in Lithuania. DigiTimesCites the report in Chinese. Manchester United Daily News In Taiwan.

Ming-hsin Kung, minister of Taiwan’s National Development Council, said semiconductors will be the main focus of Taiwan’s cooperation with Lithuania. The Baltic states hope to see increased spending on electric vehicle and laser development from the partnership.

The move is the latest in growing ties between Lithuania and Taiwan that angered China and prompted the European country to cut trade earlier this year.

The new developments in Germany and Lithuania are the latest signs of rising tensions between Western governments and China over semiconductor manufacturing capacity. I don’t think it’s going to get better anytime soon. ®