Chip deal reveals Germany’s wafer-thin credibility

Germany is taking a passive-aggressive approach to overseas takeovers. It’s a year since Taiwan’s GlobalWafers offered to buy German silicon wafer maker Siltronic for about 4.4 billion euros in cash. Yet the economy ministry in Berlin is still reviewing the bid. If it does not give the thumbs up by Jan. 31, the transaction will collapse. Shareholders aren’t holding out much hope: Siltronic shares were trading at 115 euros on Thursday afternoon, far below the 145 euro offer price.

It’s understandable that Germany wants to safeguard manufacturing capacity of wafers, a key component of semiconductors, amid a global shortage of silicon chips. The authorities could demand remedies such as a veto over future changes of ownership. What’s surprising, however, is the apparent radio silence. GlobalWafers boss Doris Hsu says she has not been able to discuss the acquisition with the government recently. The lack of clarity will discourage foreign firms from investing in the country in the future. Reuters