Shortly after the China deal in the port of Hamburg, the federal government is said to be planning to approve the next takeover. According to a media report, a Dortmund chip manufacturer could soon fall into Chinese hands. The Office for the Protection of the Constitution warns against the takeover.

The Dortmund chip maker Elmos could be in Chinese hands in a few weeks. Competitor Silex, a wholly owned subsidiary of the Chinese group Sai Microelectronics, is to take over the Dortmund production, as reported by the “Handelsblatt” from government circles. After the terminal deal at the Port of Hamburg, it would be the second Chinese entry into important economic sectors within a short period of time.

Accordingly, the sale of the factory is currently being examined by the Federal Ministry of Economics. Approval should be granted in a few weeks. The federal government is apparently ignoring the warning from the Federal Office for the Protection of the Constitution. According to the Handelsblatt, he had already pointed out the danger of increasing dependence on China in the semiconductor market.

Should the deal go through, Chinese state investors would again be allowed into sensitive sectors of the economy. The semiconductor industry is enormously important for the production of computer chips, among other things. Such components can be found in almost all electronic devices.

It was only at the beginning of October that the US government issued new export restrictions on computer chips from China – also to make its own market more independent. The dependency became apparent worldwide during the corona pandemic, when important semiconductors could not be sold due to Chinese lockdowns. The result: a lack of new electronic devices, also in Germany.

The now planned takeover of Elmos is likely to fuel the political debate again on how to deal with China as an economic power. Already in the debate about a partial entry at a container terminal in the port of Hamburg, all six responsible federal ministries opposed Chancellor Scholz, who then pushed through a compromise.

According to the report, the Ministry of Economic Affairs does not want to rebel against the chancellor when it comes to the Elmos takeover. The company’s technology is only of minor importance and offers hardly any advantages for the Chinese. According to the report, the German government argues that chip production is so outdated that the Chinese cannot derive any knowledge advantage for their own production.

Elmos produces 90 percent of its chips for the automotive industry, which is still an important branch of the economy in Germany. The company belongs to the second tier of semiconductor producers in Germany. The market leader is still the Dax group Infineon. The Federal Intelligence Service therefore also warns of Chinese covetousness. A takeover would not only mean the acquisition of knowledge, but also enable influence on the production capacities.

It is feared that China could later put pressure on individual countries with its targeted purchasing policy. China is currently aiming for global power in semiconductors.

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