81 FR 88607 - Regarding the Proposed Acquisition of a Controlling Interest in Aixtron SE by Grand Chip Investment GmbH

Executive Office of the President

Federal Register Volume 81, Issue 235 (December 7, 2016)

[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Presidential Documents]
[Pages 88607-88608]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29494]




                        Presidential Documents 



Federal Register / Vol. 81 , No. 235 / Wednesday, December 7, 2016 / 
Presidential Documents

[[Page 88607]]


                Order of December 2, 2016

                
Regarding the Proposed Acquisition of a 
                Controlling Interest in Aixtron SE by Grand Chip 
                Investment GmbH

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including section 721 of the Defense 
                Production Act of 1950, as amended (section 721), 50 
                U.S.C. 4565,

                Section 1. Findings. I hereby make the following 
                findings:

                    (a) There is credible evidence that leads me to 
                believe that: (1) Grand Chip Investment GmbH, a limited 
                liability company organized under the laws of the 
                Federal Republic of Germany (Grand Chip); (2) Grand 
                Chip's parent companies Grand Chip Investment S.a.r.l., 
                a company organized under the laws of the Grand Duchy 
                of Luxembourg (GC Investment), and Fujian Grand Chip 
                Investment Fund LP, a limited partnership organized 
                under the laws of the People's Republic of China 
                (Fujian Grand); and (3) Fujian Grand's partners, Mr. 
                Zhendong Liu, a citizen of the People's Republic of 
                China (Mr. Liu), and Xiamen Bohao Investment Co. Ltd., 
                a company organized under the laws of the People's 
                Republic of China (Xiamen Bohao and, together with 
                Grand Chip, GC Investment, Fujian Grand, and Mr. Liu, 
                the Purchasers), through exercising control of the U.S. 
                business of AIXTRON SE., a company organized under the 
                laws of the Federal Republic of Germany (Aixtron), 
                might take action that threatens to impair the national 
                security of the United States. The U.S. business of 
                Aixtron consists of AIXTRON, Inc., a California 
                corporation, the equity interests of AIXTRON, Inc., and 
                any asset of Aixtron or AIXTRON, Inc. used in, or owned 
                for the use in or benefit of, the activities in 
                interstate commerce in the United States of AIXTRON, 
                Inc., including without limitation any interest in any 
                patents issued by, and any interest in any patent 
                applications pending with, the United States Patent and 
                Trademark Office (collectively, Aixtron US); and
                    (b) Provisions of law, other than section 721 and 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1701 et seq.), do not, in my judgment, provide 
                adequate and appropriate authority for me to protect 
                the national security in this matter.

                Sec. 2. Actions Ordered and Authorized. On the basis of 
                the findings set forth in section 1 of this order, 
                considering the factors described in subsection 721(f), 
                as appropriate, and pursuant to my authority under 
                applicable law, including section 721, I hereby order 
                that:

                    (a) The proposed acquisition of Aixtron US by the 
                Purchasers is hereby prohibited, and any substantially 
                equivalent transaction, whether effected directly or 
                indirectly through the Purchasers' shareholders, 
                partners, subsidiaries, or affiliates is prohibited.
                    (b) In order to effectuate this order, the 
                Purchasers and Aixtron shall take all steps necessary 
                to fully and permanently abandon the proposed 
                acquisition of Aixtron US not later than 30 days after 
                the date of this order, unless such date is extended by 
                the Committee on Foreign Investment in the United 
                States (CFIUS) for a period not to exceed 90 days, on 
                such written conditions as CFIUS may require. 
                Immediately upon completion of all steps necessary to 
                terminate the proposed acquisition of Aixtron US, the 
                Purchasers and Aixtron shall certify in writing to 
                CFIUS that such termination has been effected in 
                accordance with this order and that all steps necessary 
                to fully and permanently abandon the proposed 
                acquisition of Aixtron US have been completed.

[[Page 88608]]

                    (c) From the date of this order until the 
                Purchasers and Aixtron provide a certification of 
                termination of the proposed acquisition to CFIUS 
                pursuant to subsection (b) of this section, the 
                Purchasers and Aixtron shall certify to CFIUS on a 
                weekly basis that they are in compliance with this 
                order and include a description of efforts to 
                permanently abandon the proposed acquisition of Aixtron 
                US and a timeline for projected completion of remaining 
                actions.
                    (d) Any transaction or other device entered into or 
                employed for the purpose of, or with the effect of, 
                avoiding or circumventing this order is prohibited.
                    (e) The Attorney General is authorized to take any 
                steps necessary to enforce this order.

                Sec. 3. Reservation. I hereby reserve my authority to 
                issue further orders with respect to the Purchasers, 
                Aixtron, or Aixtron US as shall in my judgment be 
                necessary to protect the national security.

                Sec. 4. Publication and Transmittal. (a) This order 
                shall be published in the Federal Register.

                    (b) I hereby direct the Secretary of the Treasury 
                to transmit a copy of this order to the appropriate 
                parties named in section 1 of this order.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    December 2, 2016.

[FR Doc. 2016-29494
Filed 12-6-16; 11:15 am]
Billing code 3295-F7-P