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EU should limit curbs on outbound investment, semiconductor group says

by Reuters

   AMSTERDAM --

   Semiconductor industry group SEMI Europe called on the European Union
   on Monday to place as few restrictions as possible on outbound
   investment in foreign computer chip technology by companies based in
   the bloc.

   Proposals to screen outbound investment -- European capital being
   invested in foreign semiconductor, AI and biotechnology companies --
   are being considered, though no EU decision is expected before 2025.

   The U.S. has issued draft rules for banning some such investments in
   China that could threaten U.S. national security, part of a broader
   push to prevent U.S. know-how from helping the Chinese to develop
   sophisticated technology and dominate global markets.

   "European semiconductor companies must be as free as possible in their
   investment decisions or otherwise risk losing their agility and
   relevance," SEMI Europe said in a paper outlining its recommendations.

   It said policies under consideration by the EU appear to be overly
   broad and if adopted could force companies to disclose sensitive
   business information, adding that restrictions on cross-border research
   cooperation would be misplaced.

   "We encourage the European Commission to further address these aspects
   and to not infringe on the ability of European multinational companies
   to carry out the necessary investments to sustain their operations," it
   said.

   SEMI Europe represents about 300 Europe-based semiconductor firms and
   institutions, including companies such as ASMLASML.AS, ASMASMI.AS,
   InfineonIFXGn.DE, STMicroelectronicsSTMPA.PA, NXPNXPI.O, and research
   centers such as imec, CEA-Leti and Fraunhofer.

   Alongside the proposals for outbound investment screening, the EU has
   also been moving towards a law that screens inbound investments of
   foreign capital that might pose a security risk, such as purchases of
   European ports, nuclear plants and sensitive technologies.

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