Aixtron says has arguments to counter security worries over China deal
Aixtron makes so-called close coupled showerhead reactors for the growth of gallium nitride materials, which are used in light-emitting diodes (LED) but also in military applications such as radars and combating improvised explosive devices.
Its technology has been sold in the past to U.S. defense contractor Northrop Grumman.
Aixtron said on Friday that the Committee on Foreign Investment in the United States (CFIUS) would recommend that its pending takeover by China's Fujian Grand Chip Investment Fund (FGC) be blocked.
CFIUS never gives reasons for its decisions. But Aixtron said it was sticking to the takeover plan, marking the first time that companies have tried to press ahead with a planned merger despite CFIUS objections. ■