No to investors from China: Government prohibits sale of Elmos and ERS Electronic

Chip producer Elmos and wafer manufacturer ERS Electronic remain in German ownership.

No to investors from China: Government prohibits sale of Elmos and ERS Electronic

Chip producer Elmos and wafer manufacturer ERS Electronic remain in German ownership. The federal government issued a purchase refusal to investors from China. The companies are counted as part of the critical infrastructure. A sale is classified as a threat to public order.

The federal government prohibits the sale of the wafer production of the Dortmund chip manufacturer Elmos and the Bavarian company ERS Electronic to Chinese investors. According to information from government circles, the federal cabinet made this decision. Elmos itself announced on Monday evening that "the sale of Elmos wafer production to Silex Microsystems AB will probably be prohibited".

According to its own description, ERS Electronic produces "high-precision" temperature solutions for semiconductor customers. The company is based near Munich and has branches in China and the USA.

According to "Handelsblatt", the decision on ERS Electronic was made last Thursday in a round of state secretaries. The possible sale was classified as a threat to public order and security in Germany. According to the report, the case of the Dortmund company Elmos was also discussed at the meeting.

The debate about China's influence in Germany gained momentum when the Chinese state shipping company Cosco entered the Port of Hamburg. Despite broad political concerns, the Federal Cabinet gave the go-ahead in October. Under pressure from several ministries, above all the Federal Ministry of Economics, the state-owned company was only allowed to hold less than 25 percent.