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Infineon Deal Scrutiny Raises Trade Threat to Europe Tech Firms

  • U.S. security panel seeks block of $9 billion chip merger
  • European tech firms trying to plot path between U.S. and China
Photographer: Chris Ratcliffe/Bloomberg

U.S. officials are dragging Europe’s technology industry more deeply into a trade war with China, threatening the region’s ability to create its own semiconductor giants.

The Committee on Foreign Investment is urging President Trump to block Infineon Technologies AG’s $8.7 billion acquisition of Cypress Semiconductor Corp., claiming it poses a risk to national security, Bloomberg News first reported Thursday. Although it wasn’t clear what spooked Cfius, both Infineon and Cypress have Chinese customers including Huawei Technologies Co. Cfius is sensitive about deals allowing Chinese buyers to get their hands on advanced American technology.