M & A security

Chinese Access to U.S. Semiconductor Industry May Be Curbed

The U.S. semiconductor industry is facing an unprecedented wave of consolidations, with mergers and acquisitions in the sector valued last year at over $100 billion. Chinese officials see an opportunity: They launched a coordinated state strategy to boost its share of domestically made chips in its market from around 10% to 70% in the next 10 years, using a $160 billion state fund as its war chest.

Some lawmakers fear that tougher CFIUS reviews could give China reason to block even more U.S. investment into China. That is anathema to many U.S. firms that want to capitalize on the world’s most populated market where a burgeoning middle class is reshaping global demand for goods.