San'an Optoelectronics Terminates $239M Lumileds Acquisition Due to U.S. National Security Concerns

Gate News message, April 17 — San’an Optoelectronics (600703) announced on April 17 that it is terminating a joint acquisition of Lumileds Holding B.V. with Malaysian investor Inari Amertron Berhad for $239 million. The deal was halted after the U.S. Committee on Foreign Investment in the United States (CFIUS) determined it would pose unresolvable national security risks.

Following multiple rounds of communication with CFIUS, the committee maintained its position that the transaction would create unresolvable U.S. national security concerns. On April 17, all transaction parties submitted a withdrawal notice to CFIUS and voluntarily abandoned the deal. San’an Optoelectronics stated that terminating the transaction does not constitute a breach and will not have a material adverse impact on the company’s financial condition or ability to continue operations.

Lumileds Holding B.V., based in the Netherlands, specializes in mid-to-high-end LED products for automotive lighting, camera flash, and specialized lighting applications. The acquisition was intended to provide San’an with complementary product lines, access to mature manufacturing facilities in Singapore and Malaysia, and integration into international high-end supply chains. Under the original agreement, San’an was to indirectly hold 74.5% of Lumileds’ equity.

The acquisition setback comes amid broader challenges for San’an Optoelectronics. On April 8, the company announced that Vice Chairman and CEO Lin Kechuang was placed under investigation by the Chongqing Municipal Supervision Commission. The company stated that other directors and senior management continue to operate normally. Additionally, on March 22, San’an disclosed that its actual controller Lin Xiucheng was placed under investigation by the National Supervision Commission.

San’an Optoelectronics, founded in 2000 and headquartered in Xiamen, Fujian Province, is a compound semiconductor research, manufacturing, and services enterprise. The company reported a projected net loss attributable to shareholders of 200-300 million yuan for 2025, with non-GAAP net loss projected at 750-850 million yuan. As of April 17 close, San’an Optoelectronics shares rose to 13.34 yuan, hitting the daily limit.