French firm Linxens' Czech ID card components raise security concerns due to Chinese investment

French electronic component supplier Linxens' products are used in Czech national ID cards, and partial ownership by two Chinese investment companies involved in US-sanctioned national security issues in 2024 has raised security concerns.

According to a report by the Financial Times, one of Linxens' clients is the State Printing Works of Securities (Státní tiskárna cenin), which is responsible for producing the chip components for Czech national ID cards.

The report states that the holding company owning Linxens was established by an investment group led by two Beijing-based private equity firms, Wise Road Capital and JAC Capital.

These two firms were placed on the US government's trade restriction list in 2024 because the US believes they have assisted the Chinese government in acquiring companies with sensitive semiconductor manufacturing capabilities, which are of strategic importance to the defense industrial base of the US and its allies.

The US restriction measures also apply to subsidiaries in which the sanctioned companies hold a majority stake. However, as Wise Road Capital and JAC Capital together hold less than 50% of Linxens' shares, Linxens itself is not directly subject to sanctions.

The Financial Times noted that a person familiar with Linxens' situation said, "The company's detailed knowledge of national identity documents itself constitutes an intelligence risk." Linxens has access to chips during the manufacturing process, so there remains a small possibility of hardware tampering.

Linxens, however, emphasized that the company does not have access to the transmission and personalization keys of the chips and has recently introduced technology capable of detecting chip tampering.

Regarding the security concerns, the Czech State Printing Works of Securities stated that no security risks have been found. The chips used in the ID cards are produced by a "trusted Dutch company," and Linxens fully complies with all legal requirements for participating in relevant procurement tenders.

In addition, Linxens has also contracted with Thales, a defense company contracted by the UK Home Office, to produce passports. Linxens also has a contract with the French National Printing Office (Imprimerie Nationale) to supply electronic chip modules for passports.

In response, the UK Home Office stated that Linxens' provision of embedded chips does not constitute "any security threat"; the French government has not responded to the Financial Times. (Editor: Tang Shengyang) 1150603