U.S. President Donald Trump on Wednesday blocked a Chinese-backed private equity firm from buying a U.S. chipmaker, sending a clear signal to Beijing that Washington will oppose deals that involve technologies with potential military applications.
Canyon Bridge Capital Partners' planned $1.3 billion acquisition of Lattice Semiconductor Corp. was one of the largest attempted by a Chinese-backed firm in the U.S. chip sector and was the first announced deal for the Palo Alto, California-based firm, which launched last year with a focus on technology investments.
U.S. regulatory scrutiny grew after Reuters reported in November that Canyon Bridge was funded partly by cash from China's central government and had indirect links to its space program.