The UK government has ordered Nexperiaa company owned by a Chinese business group, sell the largest British chipmaker. The company, now in the hands of Nexperia, will have to pass to another owner due to, according to the UK authorities, national security concerns.
Nexperia is a Dutch subsidiary of Shanghai-based semiconductor maker Wingtech and will now be forced to sell.”at least 86%» of its shares in the Newport semiconductor factory, more than a year after Nexperia took control of the factory. This was announced by the UK Government’s Secretary of State for Business, Energy and Industrial Strategy, Grant Shapps.
Among other reasons for ordering the sale, Shapps has pointed to the location of the factory, which is part of an industrial cluster of technology companies with a very high level of specialization located in the Welsh town of Newport. For him, “ties between the plant and the cluster may prevent the cluster from becoming involved in future projects that are relevant to national security«.
In addition, he says, he is concerned that the company could start work on more advanced compound semiconductors in Newport, and about “the potential of such activities to weaken the capabilities of the UK«.
Given this situation, from Nexperia they have claimed to be impacted by the decision, which they plan to appeal. They cite two previous security reviews that had greenlit the purchase to complain about this mandate, noting that “Nexperia does not accept the potential national security concerns raised. Wide-ranging precautions Nexperioa offered to address government concerns have been completely ignored«.
On the other hand, the company has indicated that it had offered “not carry out activities that may be of potential concern, and provide the UK government with direct control and participation in the management of Newport«.
Meanwhile, the Head of Nexperia in the UK, Toni Versluijshas stated that the company is going to try to reverse the order, suggesting that it could put more than 500 jobs at risk, also noting that «this decision sends a clear signal that the UK is closed for business. We rescued a funding-hungry company from collapse. Those who sold us the company agreed with us that it was the only viable solution, and the deal was publicly welcomed by the Welsh government.«.
Newport Wafer calls itself the UK’s largest semiconductor manufacturing facility. It has a history of supplying components to automotive and medical companies, according to Nexperia itself, which is another semiconductor manufacturer based in the Netherlands. Seized full control of the Newport factory in July 2021after working with its previous owners as a client and second largest shareholder.
