Chinese owners of Glasgow semiconductor firm ordered to sell stake by UK Government

The UK Government has ordered the Chinese owner of a Scottish semiconductor company to sell its stake in the firm after a “national security” assessment.

Future Technology Devices International Limited (FTDI) was established in 1992 as a fab-less semiconductor company with its headquarters in Glasgow.

On December 7, 2021, China-registered FTDI Holding Limited (FTDIHL) gained control of the firm by increasing the percentage of shares held to more than 75%.

In a report by the Chancellor of the Duchy of Lancaster on Wednesday, the acquisition was found to be a “trigger event” under the National Security and Investment Act 2021.

The Government has imposed a final order to require FTDIHL to sell 80.2% of FTDI within a specified period and by following a specified process.

The measure is considered necessary to mitigate risks in relation to UK-developed semiconductor technology and associated intellectual property being deployed in ways that are “contrary to UK national security”.

It was also considered the ownership of FTDI poses a risk to critical national infrastructure which uses FTDI products.

The Chancellor of the Duchy of Lancaster considers that the Final Order is necessary and proportionate to mitigate the risk to national security.

The company has research and development facilities in Glasgow and Singapore and regional sales and technical support sites in Tigard in Oregon, USA and Shanghai.

FTDI has been contacted for comment.