China’s leading LED chipmaker and its Malaysian partner have abandoned their US$239 million cash offer to purchase Dutch technology company Lumileds Holding after opposition from US authorities, marking the latest setback for Chinese tech investment overseas following the high-profile Nexperia saga.
Sanan Optoelectronics, listed in Shanghai, said in a disclosure announcement on Friday that despite multiple rounds of discussions, the Committee on Foreign Investment in the United States (CFIUS) determined the transaction would pose “irresolvable US national security risks” and asked the firms to withdraw their filing and abandon the transaction.
“Accordingly, on April 17, 2026, the parties submitted a letter to CFIUS withdrawing the filing and voluntarily abandoned the transaction,” the statement said.
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Under the share purchase agreement, regulatory clearance from all relevant domestic and overseas authorities was a closing condition. With CFIUS effectively derailing the deal, that condition could no longer be met, according to the firm.
This is the second time a Lumileds sale to a Chinese buyer has collapsed following CFIUS opposition, highlighting the complex situation facing Chinese tech firms seeking global customers through acquisitions.
“The company will continue to pursue its internationalisation strategy with resolve, and will press ahead in strengthening its competitiveness in the mid-to-high-end LED sector and in global markets,” Sanan said. The collapsed deal would not materially affect its finances or day-to-day operations, the firm added.
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