Cailianshe (Shanghai, editor Zhao Hao) reported that on Monday (February 2), the German Ministry of Economic Affairs failed to approve the acquisition of Siltronic by the large silicon wafer manufacturer Global Wafers within the specified time, which means that the transaction worth 4.35 billion euros (nearly US$5 billion) cannot proceed as planned.
Siltronic is a German-based silicon wafer manufacturer headquartered in Munich. If is acquired by Global wafers, it will create the world's second largest 300mm wafer manufacturer, second only to Japan's Shintsuki.
(Source: Global Wafer)
But Global Wafer failed to obtain approval from the German government on January 31. In a document, the company said, "Global Wafer has made extremely long-term compensation measures and commitments to the German government during the review process, and has repeatedly expressed his willingness to discuss alternatives with the German government."
"Although Global Wafer strives to reach a solution that both parties can agree on, coupled with its long and successful past in Europe, Global Wafer is very regretful about this result. Global Wafer will continue to work closely with European customers, including many customers who support this acquisition." Global Wafer should also pay Sitronic a transaction termination fee of 50 million euros.
European technology protection policy
A spokesperson for the German Ministry of Economic Affairs said, "As part of the investment review, it is impossible to complete all necessary review steps in such a short time."
U.S. business media CNBC believes that the main reason for the failure of the transaction is that countries are currently strengthening their respective "technical sovereignty", and these countries hope to get rid of their dependence on other countries in key technologies such as semiconductors. Europe currently relies heavily on the United States and Asia, and these regions have industries such as Samsung, TSMC and Intel. Abishur Prakash, co-founder of the
consulting firm Center for Innovating the Future, told the media that since 2016, Germany and the EU have begun to worry about their "technology leadership erosion".
European governments have taken a different attitude towards their chip companies, Prakash added, "Having a self-reliant European chip industry is the key. Regardless of the EU's future goals, from robots to space to quantum, the EU needs advanced semiconductors, and it does not want to be subject to other countries in this field."
Germany is home to chip manufacturers such as Infineon. After the global chip shortage hurts its automotive industry, Germany is increasingly vigilant about the global supply chain of semiconductors. The German Ministry of Economic Affairs said that if Global Wafers chooses to make a new acquisition attempt, an investment review will be conducted again.
Other chip-related mergers and acquisitions are also being investigated by the government and regulators. The most eye-catching one is the case of Nvidia's acquisition of British chip designer Arm for $40 billion, which is currently owned by SoftBank, Japan.
critics worry that Nvidia could limit Arm's business and lead to global price increases, while also reducing industry innovation. But Nvidia argues that the deal will bring more innovation, and that Arm will not only remain independent, but also benefit from investment.
