The Cabinet Office said it made the intervention to mitigate risks to the UK’s national security.
The UK government has ordered a China-linked entity to undo its acquisition of a Scottish chip company, the Cabinet Office said on Wednesday.
The FTDI Holding Limited, which was set up by owners with ties to China in 2021 to buy 80.2 percent shares of Future Technology Devices International Limited (FTDI), was told to sell the shares “within a specified period and by following a specified process.”
The order took effect on Tuesday.
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It’s a world-leading company in USB bridging and cables, which have a wide range of applications including communications, consumer electronics, industrial control, and automotive.
In the notice of final order published on Wednesday, the Cabinet Office said the order was issued to mitigate national security risks in relation to “UK-developed semiconductor technology and associated intellectual property being deployed in ways that are contrary to UK national security,” and “the ownership of FTDI being used to pose a risk to critical national infrastructure which uses FTDI products.”
Since January 2022, the UK government has blocked or imposed conditions on more than 20 foreign acquisitions of companies involving dual use goods, British critical infrastructure, and other national security-related goods and technologies.
In another case, Shapps imposed restrictions on what information can be shared in the takeover of a China-linked shell company to protect the UK National Grid.
FTDI didn’t immediately respond to The Epoch Times’ request for comment.
