The CFIUS, the Committee on Foreign Investment in the United States, is composed of nine ministries including the Ministry of Finance, the Department of Defense, the Department of Energy, the Ministry of Commerce, the Department of Homeland Security and other committees. The United States Minister of Finance served as president of the foreign companies responsible for the acquisition of U.S. businesses for national security review.However, CFIUS did not give a clear definition of national security and review standards, resulting in frequent mergers and acquisitions in the United States to setback.According to official data In the three years from 2013 to 2015, the number of transactions reviewed in China topped the list for the third consecutive year. Chinese enterprises, especially those with government background, were especially concerned by CFIUS in the United States and they were subject to more stringent scrutiny.
During the review process, CFIUS will focus on whether domestic production can meet national defense needs, foreigners' control over domestic industries and commercial activities, whether the transaction involves military weapons, the impact of the transaction on critical infrastructure and key technologies, etc. In the semiconductor industry, the main factors that will be considered aside from foreign government control are military supplies and key technologies.
Therefore, in the process of dealing with CFIUS, it is suggested that the enterprise firstly conduct a comprehensive analysis on the subject matter of the acquisition and whether it belongs to the sensitive area of CFIUS. Secondly, it conducts full and informal communication with CFIUS to understand the committee's attitude towards the transaction. Finally, if CFIUS Officially open the review, try to provide feasible derogatory measures to enhance the probability of the transaction passed.