U.S. and Netherlands Expected to Coordinate Semiconductor Export Controls

Sources: SCMP, BBC, CNN, Tech Wire Asia, 2022.10.17 ISM Roundup, 2023.01.30 ISM Roundup

In October, the Biden administration announced that companies exporting chips to China using U.S. tools or software would need licenses. Since then, the U.S. has been in talks with other countries such as the Netherlands, Japan, and South Korea to adopt similar restrictions. This past week, the Netherlands’ trade minister began the process to develop export restrictions on the country’s "most advanced" semiconductors, which include Deep Ultra Violet (DUV) immersion lithography and deposition. Since 2019, the Dutch government has stopped the country’s largest semiconductor firm ASML from selling its most advanced lithography machines to China.  

In response to the Dutch move, Japan’s trade minister announced that the administration has yet to decide on restrictions for exports of chip-making equipment, and China launched a formal complaint. South Korea's trade ministry also raised concerns over the US policy on semiconductors.

CFIUS Clears $161M Healthcare Acquistion

Sources: BioWorld, Bloomberg, 2022.11.07 ISM Roundup, MSN 

CFIUS cleared the $161M all-cash acquisition of F-Star Therapeutics Ltd. by Sino Biopharmaceutical Ltd.’s Invox Pharma Ltd. The sale, proposed in July 2022, was withdrawn and refiled with CFIUS a few times. In December 2022, CFIUS issued an Interim Order, placing a temporary hold on the merger, citing “unresolved national security risks.” In January, the firms announced they were actively negotiating with CFIUS to address concerns about potential national security risks stemming from the deal.  BEIS appears to have approved the deal as well. 

Slovak Republic Launches ISM Overhaul 

Sources: Dentons, 2023.02.06 ISM Roundup 

The Slovak Republic has launched its new comprehensive investment screening mechanism. This regime is more in line with EU regulations and expands the previous sectoral mechanism in three main ways, such as giving the government a “call-in” power, extended timelines, and expanded fines. The regime also captures investments by EU citizens or persons with their registered seat or place of business in the EU if they are controlled by a person outside the EU or by a public authority of a third country.