March 6, 2020 / 1:07 AM / a month ago

U.S. officials ask Trump to block Infineon's Cypress deal -Bloomberg News

March 5 (Reuters) - U.S. national security officials have recommended that President Donald Trump block German chipmaker Infineon Technologies AG’s proposed $10 billion deal to buy Cypress Semiconductor Corp as it poses a security risk, Bloomberg News reported on Thursday, citing people familiar with the matter.

The report bloom.bg/2IoTpf6 said it was not clear why officials with the Treasury-led Committee on Foreign Investment in the United States (CFIUS), which reviews deals by foreign acquirers for potential national security risks, saw a risk from the deal.

The White House, the Treasury and Infineon did not respond to a request for comment. Silicon Valley-based Cypress declined a Reuters request for comment.

Infineon Chief Executive Officer Reinhard Ploss had said last month the company was in a constructive dialogue with U.S. national security regulators.

The company earlier played down concerns that the takeover might be blocked by CFIUS, saying that Cypress’ focus on automotive products meant its products were not sensitive.

U.S. LED lighting maker Cree Inc terminated a deal to sell its Wolfspeed Power and RF division to Infineon in 2017, after the U.S. government raised security concerns. reut.rs/2vHOenU

Reporting by Rama Venkat in Bengaluru; Editing by Peter Cooney

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