Chinese company says no approval received for its acquisition of Elmos' chip production
Published: Oct 28, 2022 12:40 PM
Photo: CFP

Photo: CFP

Chinese group Sai Microelectronics said on Friday that it has not received any official document approving its acquisition of Elmos' auto chip production line in Dortmund after media reports said Germany plans to approve the deal.

The German government plans to approve a Chinese takeover of the chip production of Dortmund-based company Elmos, business daily Handelsblatt reported on Thursday, citing government sources.

According to Handelsblatt, the economy ministry is examining the sale of Elmos' chip factory to competitor Silex, a Swedish company that is a subsidiary of Sai Microelectronics, adding that the approval is expected in the coming weeks.

Sai Microelectronics said in the statement, "we confirm that as of now, neither the company nor its domestic and foreign subsidiaries haves received official decision or approval document from the German Federal Ministry for Economic Affairs and Climate Action regarding this acquisition deal." 

All information related to this acquisition is subject to the final decision of the German Federal Ministry for Economic Affairs and Climate Action and the company's official announcement documents, the firm added.

In December last year, Elmos said in a press release that it will sell the wafer fabrication activities in Dortmund to Silex Microsystems AB for around 85 million euros ($85.28 million).

Elmos will transfer all relevant assets and contracts that are directly linked to the wafer manufacturing into a newly founded stand-alone company. At closing, Silex will acquire 100 percent of the shares of this entity, including direct and indirect personnel under the leadership of the former management of the Elmos fab, according to the firm. 

The clarification also comes as German Chancellor Olaf Scholz said that he will travel to China with a delegation of German business leaders in early November, German media outlet Die Welt reported on Friday. The reported visit has not been confirmed by China's Foreign Ministry yet.

German cabinet approved on Wednesday an investment by COSCO for a 24.9 percent stake in one of logistics firm HHLA's three terminals in Germany's largest port in Hamburg, Reuters reported. 

In response to the deal, China's Foreign Ministry said on Wednesday that cooperation between China and Germany is mutually beneficial, hoping that "relevant parties will view China-Germany pragmatic cooperation rationally."

Chinese observers noted that some "goodwill gestures" will leave much room for maneuver for China-Germany cooperation, and also inject stability into bilateral ties as uncertainties are rising globally. 

Global Times