French company Linxens, which supplies electronic components for biometric passports and identity documents used by European countries, is owned by an investor group led by two Chinese companies subject to U.S. export restrictions. This was reported by the Financial Times. According to FT, Linxens also has a contract with the Czech State Security Printing Works to supply chip components for identity cards.
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Linxens Supplies Document Components Across Europe
Linxens manufactures components consisting of a chip and an antenna. These components are supplied, among others, to the British defence company Thales, which provides passports under contract for the UK Home Office. According to FT, the chip itself is produced by another company, while Thales subsequently loads it with the passport holder’s data.
According to a Financial Times source, the fact that Linxens has detailed knowledge of individual countries’ identity documents could represent a potential intelligence risk. Access to chip components could also theoretically create an opportunity for hardware manipulation. Linxens, however, stressed that it does not have access to chip shipments or personalized keys, and said it had recently released technology capable of detecting chip tampering.
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U.S. Restricts Chinese Investors, but Linxens Is Not Subject to the Measures
The holding company that owns Linxens was created by a group led by Chinese firms WiseRoad Capital and JAC Capital. The United States has imposed export restrictions on both companies since 2024 due to national security concerns. Washington says the companies help the Chinese government acquire entities capable of producing semiconductors important to the defence industry of the U.S. and its allies.
U.S. restrictions also automatically apply to subsidiaries in which the affected companies hold a majority stake. However, the restrictions do not apply to Linxens because the combined share of WiseRoad Capital and JAC Capital in the holding company that owns Linxens is below 50 percent. Both the UK Home Office and the Czech State Security Printing Works said they had identified no security risk related to supplies from Linxens. The issue of Chinese technologies, however, remains sensitive in the European Union, partly due to debates about high-risk suppliers in telecommunications, energy and cybersecurity infrastructure.
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Source: ČTK
