Chinese LED chip manufacturer, Sanan Optoelectronics, has abandoned its plan to acquire the Dutch company Lumileds Holding for $2.39 billion in cash. The decision came after the U.S. regulatory agency raised concerns about unresolved national security risks, marking the latest setback for Chinese technology companies in overseas investments.
Following the high-profile acquisition controversy of the Chinese company Wingtech’s acquisition of the Dutch semiconductor company Nexperia, Sanan Optoelectronics announced on Friday (April 17) that despite multiple rounds of communication, the Committee on Foreign Investment in the United States (CFIUS) deemed the transaction would pose “unresolvable U.S. national security risks” and demanded withdrawal of the application and abandonment of the deal.
In a public announcement, Sanan Optoelectronics stated that both parties submitted a letter to withdraw the application to CFIUS on April 17, 2026, voluntarily abandoning the transaction. According to the equity acquisition agreement, obtaining approval from all relevant domestic and foreign regulatory agencies is a necessary condition for completing the transaction.
Founded in November 2000, Sanan Optoelectronics is headquartered in Xiamen, Fujian Province. Initially engaged in the research, development, production, and sales of full-color ultra-high-brightness LED epitaxial wafers, chips, compound solar cells, etc., the company entered the compound semiconductor integrated circuit industry in 2014.
In 2025, Sanan Optoelectronics and its Malaysian partner, Inari Amertron Berhad, announced a joint plan to acquire 100% of Lumileds and its European and Asian subsidiaries, aiming to gain the Dutch company’s production facilities in Singapore and Malaysia and establish overseas production bases quickly to ensure reliable supply to international customers.
This is the second time CFIUS has blocked a Chinese-related company from acquiring Lumileds. Lumileds focuses on high-end LED products such as automotive lighting, specializing in manufacturing and selling LED products and solutions for automotive lights, camera flashlights, and special lighting fields.
In 2015, a consortium led by the Chinese private equity firm Hillhouse Capital sought to acquire an 80.1% stake in Lumileds under Dutch company Philips for $3 billion.
In January 2016, CFIUS rejected the deal due to concerns about the Chinese Communist Party obtaining control over the military-civilian dual-use semiconductor technology involved in LED manufacturing.
Sanan Optoelectronics has recently faced challenges one after another. Last week, Vice Chairman and General Manager of the company, Lin Kechuang, was detained and under investigation by the Chinese authorities. This incident occurred just half a month after the company’s actual controller, Lin Xiucheng, was detained and investigated by the authorities at the end of March. Lin Kechuang is Lin Xiucheng’s son-in-law.