Reuters: Chinese government money backs deal for US chip maker

Canyon Bridge Capital Partners, a buyout fund that agreed to acquire US-based chip maker Lattice Semiconductor Corp for $1.3 billion earlier this month, is funded partly by cash originating from China’s central government and also has indirect links to its space program, Chinese corporate filings show. Reuters, in a review of about a dozen filings from China’s state-run corporate register, has established that the financial investment in Canyon Bridge originates from China’s State Council, the top decision-making body of the government. This link could draw more US regulatory scrutiny over the Lattice deal on concerns that technology gained through the purchase could be used by China’s military, according to analysts who follow the chip industry and monitor foreign investment review decisions by the US government.