Protectionism in disguise? The Committee on Foreign Investment in the United States (CFIUS) has blocked Infineon's planned acquisition of Wolfspeed saying it may pose security risks, which remain unspecified so far. It is not the first such move to block traditional allies like Germany in the USA. Wolfspeed is crucial to Infineon's strategy for new chip materials like silicon carbide used in electric vehicles.
Infineon Technologies AG announces the following regarding its proposed acquisition of Wolfspeed Power & RF and the related substrate business from Cree Inc:
The Committee on Foreign Investment in the United States (CFIUS) informed Infineon and Cree that the transaction poses a risk to the national security of the United States. Furthermore, CFIUS had not identified any mitigation measures that it believed would adequately mitigate the particular national security risks posed by the transaction.
Against this background, Infineon is of the opinion, that there is a considerable risk that the transaction, as agreed, is not going to close.
Infineon remains committed to work closely together with both CFIUS and Cree to find solutions that would mitigate the concerns raised by CFIUS.
Wolfspeed have spent more than 28 years as part of Cree Inc, building the future with market-leading wide bandgap semiconductor products for the transportation, industrial, energy and communications markets.
Infineon had announced its plans to buy Wolfspeed from US group Cree for $850 million last year, hoping to boost its position in radio frequency and power solutions.
Source: Infineon Technologies AG
Top image: Wolfspeed