President Obama has blocked the deal for Chinese Fujian Grand Chip Investment Fund and any of its subsidiaries to acquire the German semiconductor deposition firm Aixtron, citing risks to US national security.
The action is thought to be based on concerns about China accessing IP and knowhow associated with the production of compound semiconductors, in particular GaN devices used in LEDs, military radars, antennas, power semiconductors and lasers.
A key part of Aixtron's business is MOCVD systems used to build compound semiconductor materials
Last January, the US blocked the sale of Philips' lighting business, Lumileds, to a consortium of Chinese investors. Lumiled's GaN technology was thought to be central to the US decision.