National Security Review of Two Foreign Acquisitions in the Semiconductor Sector

GAO discussed the Committee for Foreign Investment in the United States (CFIUS) review process for two foreign investments and commented on proposed legislation relating to GAO access to certain kinds of government data on foreign investment. GAO found that: (1) the acquisitions of two major semiconductor companies showed inconsistencies in U.S. defense technology policy; (2) the CFIUS case-by-case approach highlighted certain investment issues, but focused on developing information to meet specific legislative requirements; and (3) another limitation of the CFIUS process is its reactive nature. GAO noted that the proposed legislation could improve the quality of data on foreign direct investment in the United States. GAO believes that access to foreign direct investment data would be consistent with its mission and appropriate and beneficial to legislative branch oversight.