Canyon Bridge-Lattice Semiconductor (2017)
2017What Happened
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.
Outcome
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.
Why It's Relevant Today
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.
