Semiconductor Industry Group Urges EU to Limit Restrictions on Outbound Investment

EU should limit curbs on outbound investment, semiconductor group says

AMSTERDAM (Reuters) - Semiconductor industry group SEMI Europe called on the European Union on Monday to place as few restrictions as possible on outbound investment in foreign computer chip technology by companies based in the bloc. Proposals to screen outbound investment - European capital being invested in foreign semiconductor, AI and biotechnology companies - are being considered, though no EU decision is expected before 2025. The U.S. has issued draft rules for banning some such investments in China that could threaten U.S. national security, part of a broader push to prevent U.S. know-how from helping the Chinese to develop sophisticated technology and dominate global markets. "European semiconductor companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance," SEMI Europe said in a paper outlining its recommendations. It said policies under consideration by the EU appear to be overly broad and if adopted could force companies to disclose sensitive business information, adding that restrictions on cross-border research cooperation would be misplaced. "We encourage the European Commission to further address these aspects and to not infringe on the ability of European multinational companies to carry out the necessary investments to sustain their operations," it said. SEMI Europe represents about 300 Europe-based semiconductor firms and institutions, including companies such as ASML, ASM, Infineon, STMicroelectronics, NXP, and research centres such as imec, CEA-Leti and Fraunhofer. Alongside the proposals for outbound investment screening, the EU has also been moving towards a law that screens inbound investments of foreign capital that might pose a security risk, such as purchases of European ports, nuclear plants and sensitive technologies. (Reporting by Toby Sterling; Editing by Helen Popper)

EU should limit curbs on outbound investment, semiconductor group says

Semiconductor industry group SEMI Europe called on the European Union on Monday to place as few restrictions as possible on outbound investment in foreign computer chip technology by companies based in the bloc. Proposals to screen outbound investment -- European capital being invested in foreign semiconductor, AI and biotechnology companies -- are being considered, though no EU decision is expected before 2025. The U.S. has issued draft rules for banning some such investments in China that could threaten U.S. national security, part of a broader push to prevent U.S. know-how from helping the Chinese to develop sophisticated technology and dominate global markets. "European semiconductor companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance," SEMI Europe said in a paper outlining its recommendations. It said policies under consideration by the EU appear to be overly broad and if adopted could force companies to disclose sensitive business information, adding that restrictions on cross-border research cooperation would be misplaced. "We encourage the European Commission to further address these aspects and to not infringe on the ability of European multinational companies to carry out the necessary investments to sustain their operations," it said. SEMI Europe represents about 300 Europe-based semiconductor firms and institutions, including companies such as ASMLASML.AS, ASMASMI.AS, InfineonIFXGn.DE, STMicroelectronicsSTMPA.PA, NXPNXPI.O, and research centers such as imec, CEA-Leti and Fraunhofer. Alongside the proposals for outbound investment screening, the EU has also been moving towards a law that screens inbound investments of foreign capital that might pose a security risk, such as purchases of European ports, nuclear plants and sensitive technologies.

EU should limit curbs on outbound investment, semiconductor group says

Semiconductor industry group SEMI Europe called on the European Union on Monday to place as few restrictions as possible on outbound investment in foreign computer chip technology by companies based in the bloc. Proposals to screen outbound investment - European capital being invested in foreign semiconductor, AI and biotechnology companies - are being considered, though no EU decision is expected before 2025. The U.S. has issued draft rules for banning some such investments in China that could threaten U.S. national security, part of a broader push to prevent U.S. know-how from helping the Chinese to develop sophisticated technology and dominate global markets. "European semiconductor companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance," SEMI Europe said in a paper outlining its recommendations. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) It said policies under consideration by the EU appear to be overly broad and if adopted could force companies to disclose sensitive business information, adding that restrictions on cross-border research cooperation would be misplaced. "We encourage the European Commission to further address these aspects and to not infringe on the ability of European multinational companies to carry out the necessary investments to sustain their operations," it said. SEMI Europe represents about 300 Europe-based semiconductor firms and institutions, including companies such as ASML, ASM, Infineon, STMicroelectronics, NXP, and research centres such as imec, CEA-Leti and Fraunhofer. Alongside the proposals for outbound investment screening, the EU has also been moving towards a law that screens inbound investments of foreign capital that might pose a security risk, such as purchases of European ports, nuclear plants and sensitive technologies. Read Comments

Semiconductor group advises EU to maintain open foreign investment policy: report

SEMI Europe, a semiconductor industry group, advised the European Union on Monday to maintain an open investment policy in foreign computer chip companies by EU-based firms, according to a report by Reuters. The EU is considering proposals to begin screening European investments in foreign semiconductor, AI and biotech companies. The EU is expected to make decisions on these proposed rules as soon as next year. "European semiconductor companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance," SEMI Europe said in a paper to the EU, according to Reuters. The U.S. already has draft rules meant to stymie investments in foreign technology companies, particularly the People's Republic of China. "Certain investments from the United States into a country of concern can be exploited to accelerate the development of sensitive technologies or products in ways that negatively impact the strategic military position of the United States," according to the proposed rules in the Federal Register. "Such investments, therefore, risk exacerbating this threat to U.S. national security." SEMI Europe's case to the EU sounds similar to a research paper it released earlier this year stressing the importance of foreign investments by semiconductor companies. "Given the highly specialized and globalized nature of the semiconductor supply chain, foreign direct investment is a critical aspect of business operations for the vast majority of SEMI members," SEMI Europe said in the paper. "Thus, in order to guarantee the long-term success and prosperity of the European semiconductor industry, our companies must be as free as possible in their investment decisions or otherwise risk losing their agility and relevance in the global markets," SEMI Europe added.