Canyon Bridge-Lattice Semiconductor (2017)
Trump blocked a $1.3 billion Chinese state-backed buyout of Lattice Semiconductor, a US chipmaker, after CFIUS found national security risks from IP transfer and Chinese government funding. Canyon Bridge was a private equity fund created specifically to minimize CFIUS scrutiny, with China Reform Holdings as sole investor. CFIUS determined this was a cover transaction that couldn't obscure Chinese state control. The parties refiled their CFIUS notice three times attempting to address concerns before Trump ultimately ordered abandonment within 30 days.
Deal collapsed; Lattice remained independent and US-controlled.
Became the template for aggressive CFIUS enforcement against Chinese semiconductor acquisitions, establishing that complex corporate structures won't hide ultimate control.
The HieFo case follows the same playbook: a small Delaware company created to acquire US chip assets, but with Chinese control CFIUS sees through. Like Canyon Bridge, HieFo's American incorporation didn't matter—control is what counts.
