Chinese Acquisition of Semiconductor Firm Poses Security Risks, US Treasury Warns

An exterior view of the building of US Treasury Department in Washington on March 27, 2020. Olivier Douliery/AFP via Getty Images

The U.S. Treasury Department said the sale of Magnachip Semiconductor Corp. to a Chinese private equity firm poses “risks to national security,” as Chinese investments in critical technologies meet with enhanced U.S. scrutiny.

Magnachip, a South Korean producer for display and power chips, sold its controlling stake in late March to Chinese private equity firm Wise Road Capital in an all-cash deal worth about $1.4 billion.