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CFIUS Halts Non-Notified Semiconductor Sale to Chinese Entity: Key Takeaways for Foreign Investment

The Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”), under the U.S. Department of the Treasury (“Treasury”), has the authority to review for national security risks certain foreign investment transactions in U.S. businesses.

As discussed in our previous article, CFIUS Heightens Scrutiny of Non-Notified Transactions, CFIUS has a dedicated team within the Office of Investment Security Monitoring and Enforcement – the so-called “non-notified team” – that focuses solely on searching for and identifying non-notified transactions that may pose national security risks and were not voluntary reported to the Committee. Due to the efforts of this team, non-notified transactions are undergoing heightened scrutiny. In particular, for transactions that involve both the semiconductor industry and foreign investors from the People’s Republic of China (“China”), the likelihood of the non-notified team finding out about the transaction and requesting parties file a notice for CFIUS approval is at an all-time high. Read more…