US Treasury says if Wise Road Capital purchases Korean chip maker Magnachip it will pose threats to US national security.
In March, Chinese private equity firm Wise Road Capital agreed to acquire system chip manufacturer Magnachip in a deal valued at $1.4 billion.
Magnachip said in a SEC filing on Monday the U.S. Department of Treasury, in a letter to the company’s legal counsel last Friday, said the acquisition posed “risks to the national security of the United States,” and expects to seek President Joe Biden’s decision on the matter.