Chinese-owned UK chipmaker still awaiting sale after government order
More than a year after ministers ordered the sale of a Chinese-owned British semiconductor company on national security grounds, the deal has yet to materialise.
Glasgow-based Future Technology Devices International (FTDI) remains majority owned by a Chinese state-backed consortium, despite the cabinet office directing investors to divest their stake in November 2024.
The company was acquired in 2021 for around $414m (£310m) by funds linked to Beijing Jianguang Asset Management, which bought roughly 80 per cent of the business through a UK holding company.
FTDI produces USB bridge chips used across a wide range of electronics, for older hardware to connect with newer systems.
Its tech appears in everything from industrial equipment, to consumer electronics.
However, the acquisition came under greater scrutiny following Russia’s invasion of Ukraine, afte reportedly identified FTDI components inside a captured Russian tank, the Telegraph reported.
The government later launched a national security review of the transaction before concluding the company’s tech could potentially be “deployed in ways that are contrary to UK national security”.
That assessment led ministers to invoke powers under the national security and investment act to force the Chinese investors to sell their holding.
But despite the order, the ownership structure has yet to change.
FTDI’s latest accounts, published last week, show the company is still controlled by the same investor group.
Corporate filings from firms linked to the consortium also show that several deadlines linked to the disposal process have already passed.
One shareholder, Electric Connector Technology, recently wrote down around £22m tied to the investment as it prepared for a potential loss when the stake is eventually sold.
Investment scrutiny
The lenghty process reflects the increasingly complex environment surrounding cross-border investment in sensitive tech sectors.
Semiconductors have become a strategic asset globally, as governments seek to secure domestic supply chains and limit the transfer of advanced tech to geopolitical rivals.
Meanwhile, China is doubling down on its own technology ambitions.
At this year’s National People’s Congress, Premier Li Qiang said AI, semiconductors and robotics were pillars of China’s emerging so-called “smart economy”.
Mentions of AI in the government’s annual work report more than doubled year from the year prior, sparkingrenewed interest among investors in Chinese tech sectors.
A government spokesman said ministers were continuing to work with FTDI holding structure to make sure it complies with the final order but declined to comment further.
FTDI has previously said it follows all applicable laws and does not condone the misuse of its technology.