2/1, 12:37 PM (Source: TeleTrader)
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Germany scraps $5 billion chip deal with Taiwan firm

Germany has opted out of the deal with GlobalWafers, a Taiwanese tech company manufacturing silicon wafers for computer chips, who intended to take over its Munich-based rival Siltronic. The breakaway is largely a part of the EU plan to reduce technological reliance on the United States and Asia regarding critical technologies such as semiconductors.

“The takeover offer by GlobalWafers and the agreements which came into existence as a result of the offer will not be completed and will lapse,” GlobalWafers stated on Tuesday. Germany's ministry of economy did not provide the $4.9 billion clearing of the deal by January 31, implying that the intended acquisition could not go through.

“It was not possible to complete all the necessary review steps as part of the investment review," Germany's economic ministry representative stated. The acquisition, had it taken place, would have produced the world's second-biggest maker of 300-millimeter wafers, just behind Japan's Shin-Etsu.

Baha Breaking News (BBN) / SP