Last year, Canyon Bridge Capital Partners, a Chinese government-backed investment fund, made one of that country’s most ambitious attempts to buy a U.S. chip company with a $1.3 billion bid for Lattice Semiconductor. But after the Chinese origins of the prospective buyer attracted scrutiny by the Trump administration, Canyon Bridge scrapped the deal.
The firm quickly turned its attention to friendlier terrain: Europe. A little over a week after the Lattice deal died, Imagination Technologies, a U.K.-based graphics chip designer, agreed to be acquired by Canyon for $675 million, which the country’s government approved soon after. To clear the way for the deal though, Canyon had to hastily sell off MIPS, an older chip business Imagination owned that is used by the U.S. military and other customers.