February 20, 2025 /SemiMedia/ — Britain's High Court has recently dismissed an application for an interim injunction by FTDI Holding Ltd, a company owned by Chinese entities, seeking to block a government order to divest its stake in Scottish semiconductor firm FTDI.

FTDI Holding Ltd, controlled by five Chinese limited partnerships linked to state-owned investment firm Jiasheng Investment, acquired an 80.2% stake in FTDI on Dec. 7, 2021. FTDI is renowned for its expertise in USB technology and operates as a fabless semiconductor company.

On Nov. 22, 2023, the UK government launched an investigation into the transaction and on Nov. 5, 2024, issued a directive mandating FTDI Holding Ltd to completely divest its shares in FTDI. This decision was made on national security grounds, citing concerns over potential technology and intellectual property transfer to China, as well as threats to critical national infrastructure.

Under the UK's National Security and Investment Act's "retrospective review" provisions, the government has the authority to scrutinize deals completed between Nov. 12, 2020, and Jan. 4, 2022. FTDI Holding Ltd sought a judicial review on Dec. 3, 2024, requesting an interim injunction to halt the divestiture process during the review. However, London's court this month rejected the plea, denying FTDI Holding Ltd's request for temporary relief.

In a statement, FTDI Holding Ltd expressed deep disappointment over the court's decision and maintained that its ownership of FTDI poses no threat to UK national security. The company proposed a series of interim measures aimed at mitigating any potential security risks to avoid forced divestment during the judicial review process.