In response, Italy’s new Prime Minister Mario Draghi told the media on April 8 that the authorities recently reviewed a Chinese company’s acquisition of an Italian semiconductor company and ultimately rejected the deal. The acquisition case. Although Draghi did not name the company in question, Italian government sources provided the above details to Reuters.
The source said that the executive order signed by Draghi and the Italian Ministry of Development, dated March 31, showed that Shenzhen Genesis Investment Holdings Ltd. informed the Italian government that the company had acquired a 70 percent stake in LPE S.p.A. on Dec. 21, 2020. In response, Draghi, who was president of the European Central Bank, told reporters Thursday that “there was a recent case where the government investigated …… an Italian semiconductor company, which was to be acquired by a Chinese company. (The acquisition) was blocked.” He added, “The shortage of semiconductors has forced many automakers to slow down production in the last year. This is an industry of strategic importance and the Italian authorities will use the golden power clause to interfere with the deal.”
The Italian government has informed the two companies involved in the acquisition this week about the decision, the sources said, adding that the Chinese companies involved are affiliated with the Chinese government. It is understood that under Italian law, the Italian government is granted a “golden power” to protect the property of companies, whether listed or not, that are active in strategic markets or own and operate sensitive technologies and related assets of national interest to Italy. This power, which can be used to prevent foreign investors from buying and managing strategically sensitive companies, has only been used three times since 2012. This includes the Italian government’s veto of a 5G partnership between telecom group Fastweb and Huawei last October.
The Italian government’s “golden powers” currently apply to finance, credit, insurance, energy, transportation, water, health, food safety, robotics, semiconductors and cybersecurity. Italian Industry Minister Giancarlo Giorgetti said Thursday that the government is considering extending such powers to some supply chains in the auto and steel industries. He had said early last month that if Case New Holland Industrial Group decides to sell its commercial vehicle brand Iveco to China FAW, the move must first be approved by the Italian government.
According to the information, LPE was founded in 1972, headquartered in Milan, Italy, the production of silicon epitaxial reaction furnace and silicon carbide epitaxial furnace and other semiconductor equipment, it has been involved in and led the initiation and promotion of a number of European silicon carbide projects. The company’s silicon carbide epitaxy furnace equipment in the global market share to maintain the top three, while in China has maintained the first market share. ST is one of LPE’s major customers and LPE provides epitaxial sensors to the company, sources close to the matter said.
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