The U.S. Treasury Department said the sale of Magnachip Semiconductor Corp. to a Chinese private equity firm poses “risks to national security,” as Chinese investments in critical technologies meet with enhanced U.S. scrutiny. Magnachip, a South Korean producer for display and power chips, sold its controlling stake in late March to Chinese private equity firm Wise Road Capital in an all-cash deal worth about $1.4 billion. The Committee on Foreign Investment in the United States (CFIUS), the U.S. interagency panel overseen by the Treasury Department that scrutinizes foreign deals for national security implications, sent a letter to Magnachip on Aug. 27, saying it has “identified risks to the national security of the United States arising as a result of the Merger,” and would seek President Joe Biden’s decision on the issue, the company disclosed in its latest filing with the U.S. Securities and Exchange Commission (SEC). CFIUS added that it … [Continue Reading Article]
