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Infineon, Cree warn U.S. might stop Wolfspeed sale
February 8, 2017 / 10:57 PM / 9 months ago

Infineon, Cree warn U.S. might stop Wolfspeed sale

FRANKFURT, Feb 8 (Reuters) - German chipmaker Infineon and U.S. LED lighting maker Cree warned that Cree’s planned sale of Wolfspeed Power and RF to Infineon might not go ahead, citing security concerns by the U.S. government.

The Committee on Foreign Investment in the United States (CFIUS) informed Infineon and Cree that the deal poses a risk to U.S. national security, Infineon said on Wednesday, adding that CFIUS had so far not identified any mitigation measures.

“Against this background, Infineon is of the opinion that there is a considerable risk that the transaction, as agreed, is not going to close,” it said.

Infineon in July agreed to buy Wolfspeed Power and RF - which helps to make electronic devices operate more efficiently - for $850 million, betting on new energy-efficient chips it expects will dominate the market in the next decade. (Reporting by Christoph Steitz; Editing by Georgina Prodhan)

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