MarketWatch First Take: Donald Trump must now decide how U.S. will approach China’s chip ambitions

The fate of Lattice Semiconductor Corp.’s acquisition by a Chinese-backed investment firm now rests with President Donald Trump, who could use the important test case to send a message about how the U.S. will approach China’s hunger for chips.

Lattice LSCC, +0.35% said in a regulatory filing Friday that the Committee on Foreign Investment in the U.S., or CFIUS, plans to recommend that President Trump suspend or prohibit the proposed merger between Lattice and an indirect, wholly-owned subsidiary of Canyon Bridge Fund I LP, a private-equity fund with Chinese investors. CFIUS believes that the deal represents a threat to national security, which is in line with an opinion on China’s attempts to buy chip companies put forth late in President Barack Obama’s tenure as president.

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