Chip maker Elmos said the German government may block Chinese companies from buying the Elmos chip factory.
The German economy ministry is already reviewing Elmos' sale of the chip factory to Swedish chipmaker Silex, the Swedish unit of China's Sai Microelectronics.
In the latest development, Elmos said, the deal is likely to be banned. The German economy ministry had told the parties that the deal was likely to be approved.
Elmos said that the next steps will be taken after receiving the final evaluation results.
