Endangering national security? Secret Lumileds LED with U.S. security relations

The United States government to concern national security grounds strictly examine the sale of PHILPS's LED business Lumileds shares, led PHILPS with the Jinsha River (GO Scale Capital) China investment team mainly decided to suspend the transaction. The United States has the media that, just look at the LED light source, how would you think of this and the national security of the United States? Where is the problem?

We first look at Lumileds LED an important cause of the PHILPS's, it was the predecessor of the United States giant HP (HP) LED career, before it was bought by PHILPS, the company named Philips Lumileds, in 2010, Philips Lumileds company has sold 1 billion Luxeon LED, can be said to be a hit milepost. Then in March 2015, Holland PHILPS announced that they had split the Lumileds company out of independence, and to sell 80% stake to the investment team led by Jinsha River. However, on Friday, CFIUS, also known as the American Review Committee on foreign investment in this unit and PHILPS to discuss the results, this is the sale of the $2 billion 800 million deal, PHILPS and Jinsha River both suspended trading.

As the parties did not specify whether the U.S. government is based on what kind of national security considerations, there will be such a result, the parties' speculation followed. CFIUS said that on the deal, the national security review is very important, and the supply chain of globalization so that the boundaries of the relevant review is also more extended.

The United States media that began, Li-Fi wireless communication technology research and development five years ago, the LED light source into communication with the device, is a new field, and if the US government does not want to sell Lumileds overseas they doubt the buyer, for influence and national security issues of this technology, if you can equal, is currently the Public opinions are divergent. The application of LED in addition to outside lighting, optical communication, mobile phone, car lights with LCD backlight, LED TV, mobile phone and mobile devices, is used in a wide range of products, but related to the national security issue, really don't know why outsiders.

The PHILPS side stressed that the company will continue to split the Lumileds operations, and find new buyers, but did not disclose the buyer from where. But the market observation and analysis, in addition, U.S. manufacturers of private equity funds, including South Korea, Taiwan and other Asian manufacturers, also have the opportunity to be the next Lumileds buyers, but the price may have changed.

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