UK Government Orders Sale of Chinese-Controlled Chip Company Amid Security Fears
- The UK government issued an order on November 5, 2024, requiring FTDI Holding Limited to sell its shares of Future Technology Devices International Limited.
- This decision came in response to potential national security risks associated with the ownership of semiconductor technology.
- The action underscores the UK government's commitment to protecting national interests by regulating foreign acquisitions of critical technologies.
On November 5, 2024, the UK government mandated that FTDI Holding Limited, a firm with ties to China, divest its acquisition of Future Technology Devices International Limited (FTDI), a Scottish semiconductor company. This order was implemented to address risks to national security arising from the ownership of UK-developed semiconductor technology. The Cabinet Office highlighted concerns about the potential exploitation of FTDI technologies that could threaten critical national infrastructure. Since January 2022, the UK authorities have taken significant measures to scrutinize foreign acquisitions, especially those related to key technologies and dual-use goods. This decision reflects a growing awareness of the vulnerabilities related to foreign ownership of crucial technological assets. The intervention marks an essential step in protecting the UK’s technological sovereignty and safeguarding national interests. FTDI, which is engaged in semiconductor research and development, has facilities in Glasgow and Singapore. The intervention is part of a broader trend where the UK government has acted to block or impose restrictions on foreign ownership that may pose risks to national security. FTDI did not respond immediately to inquiries regarding this order, leaving stakeholders to speculate on the company's next steps in compliance with the directive and its implications for the investment landscape in UK technology sectors.