On September 14, according to CNBC, U.S. President Donald Trump issued an executive order to block a deal that would have seen Lattice Semiconductor, a U.S. chipmaker, acquired by a consortium. The move was based on national security concerns, and one of the key players in the consortium is a Chinese venture capital firm. This kind of decision is quite rare, marking the fourth time in 27 years that a U.S. president has rejected a transaction on such grounds.
The potential buyer in this case is Canyon Bridge, a private equity firm backed by China Venture Capital Fund Corporation Limited. According to the White House, this fund is linked to a Chinese state-owned organization. The U.S. president has the authority to block foreign acquisitions of American companies if they are deemed a threat to national security—whether due to the nature of the company itself or the background of the buyer.
In its statement, the White House cited several reasons for blocking the deal, including the risk of transferring sensitive intellectual property to foreign entities, the involvement of the Chinese government, the strategic importance of the semiconductor supply chain, and the fact that Lattice's products are used by the U.S. government. These factors were seen as significant enough to justify the intervention.
Following the announcement, Lattice Semiconductor's stock dropped about 1% in after-hours trading. The decision comes amid broader scrutiny from the Trump administration over deals involving U.S. companies and Chinese buyers. The main body responsible for reviewing such transactions is the Committee on Foreign Investment in the United States (CFIUS), which advises the president on whether to approve or block them.
Canyon Bridge expressed disappointment with the ruling, stating that the deal could have benefited both shareholders and employees of Lattice Semiconductor. The firm argued that the transaction might have helped the company maintain its position in the U.S. market. However, the White House remained firm in its stance, emphasizing the need to protect national security interests at all costs.
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