We can see the Infineon logo on a chip on the board of a microcontroller kit during the annual general meeting of Infineon at the convention center of the Munich exhibition center. Finally, consider one of the leading European technology companies in the semiconductor industry.
Europe has long been an attractive place for Chinese companies wishing to invest and acquire – and the recent attack on weakness in stocks, particularly in key technology companies, could foster their interest.
According to an analyst, some of Europe’s major technology companies are “vulnerable” due to the market crisis. Europe is vulnerable because the continent lags behind China and the United States in economic growth and innovation. Finnish network equipment maker Nokia has been down 9.6% since the beginning of the year. Its competitor Ericsson has dropped by 2%. Meanwhile, the chip companies Infineon and STMicro were down 20% and 7.5% respectively.
I would say Europe is vulnerable because mainland China and China underpin both economic growth and innovation, “Neil Campling
“China has long used a” buy it faster than build it “policy to scale back quickly and will surely think that recent outages and lower market value may offer opportunities.
Chinese takeovers in Europe
Chinese companies have made significant acquisitions and investments in European technology companies. In 2016, the Chinese tech giant Tencent acquired a majority stake in the Finnish supercell Mobile Games Maker, and Midos, a Chinese manufacturer of electrical devices, purchased the German robotics company, Kuka. And last year, Ant Financial, Alibaba’s financial technology subsidiary, acquired the UK-based WorldFirst currency.
But investigations into Chinese acquisition efforts have increased recently, especially in the United States by the Foreign Investment Committee in the United States or CFIUS.
It has blocked Chinese companies seeking to acquire US companies, particularly those located in key technology sectors. An example was in 2018 when CFIUS blocked the acquisition of the semiconductor test Xcerra by the Chinese company Hubei Xinyan by the American company. And in January, CFIUS acquired more powers to deal with threats to national security.
What heightens concern for Chinese acquisitions is manifesting itself in Europe. Margrethe Vestager, the European Union (EU) competition commissioner, suggested in an interview with the financial times released Monday, countries should consider picking pins in companies to ward off the threat of a Chinese acquisition. We have no problem with states acting.