Trump Prohibits Chinese Corporation From Acquiring US Semiconductor Company

WASHINGTON (Sputnik) — President Donald Trump issued an order that bans a Chinese firm, among others, from acquiring a US semiconductor corporation, the White House said in a press release on Wednesday.

"President Donald J. Trump issued an order prohibiting the acquisition of Lattice Semiconductor Corporation (Lattice) by, among others, China Venture Capital Fund Corporation Limited (CVCF)," the release said. "CVCF is a Chinese corporation owned by Chinese state-owned entities that manages industrial investments and venture capital."

Trump’s order addresses the potential risk such a transaction may have on US national security, US Department of Treasury Secretary Steven Mnuchin said in a separate press release on Wednesday.

Provisions in the Defense Production Act of 1950, including the Foreign Investment and National Security Act of 2007, allows the US president to take appropriate actions to prohibit foreign entities from acquiring US businesses if such acquisitions pose potential risk to national security, the release said.

Trump considered the Chinese government’s role in supporting the acquisition, and factored in his decision the importance of maintaining the integrity of the semiconductor supply chain in the United States and the use of Lattice products by the US government, the release added.