Sanan Optoelectronics Abandons $239 Million Bid for Lumileds After CFIUS Blockade
The U.S. government has blocked Sanan Optoelectronics' $239 million acquisition of Lumileds due to national security concerns. This decision reflects ongoing scrutiny of foreign investments in semiconductor technology with military applications.
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Sanan Optoelectronics has canceled its $239 million bid to acquire Lumileds following a ruling from the Committee on Foreign Investment in the United States (CFIUS) that identified significant national security risks. This is the second failed attempt by a Chinese entity to purchase Lumileds, with a previous bid blocked in 2016 over similar concerns regarding gallium nitride (GaN) technology.
The ruling is part of a broader trend where CFIUS has consistently opposed acquisitions involving compound semiconductors due to their military applications. Sanan has faced challenges recently, including the detention of its founder and a significant drop in share price. Despite the setback, Sanan has stated that it will continue to pursue international expansion.
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