UK Government 'closely monitoring' Chinese takeover of Newport company

The UK Government is “closely monitoring” the planned takeover of a Newport company by a Chinese-owned firm.

It's been announced Newport Wafer Fab, one of Wales' leading tech firms and also the UK's biggest producer of microchips, continues to be bought by Chinese-owned firm Nexperia for approximately lb67m.

Newport Wafer Fab employs 470 people and Nexperia is wholly of Chinese tech firm Wingtech.

Conservative MP and chairman of the Foreign Affairs Select Committee Tom Tugendhat has raised concerns with UK Government business secretary Kwasi Kwarteng within the takeover on national strategic asset and security grounds.

On Monday he said he'd be very surprised if the deal was not being reviewed under the National Security and Investment Act – new legislation brought in to protect key national assets from foreign takeover. “The semiconductor industry sector falls underneath the scope of the legislation, the purpose of which is to protect the nation's technology companies from foreign takeovers if you find a fabric risk to economic and national security,” he said.

Last year the Westminster government said hello was removing Chinese firm Huawei from the UK's 5G network by 2027.

The Welsh Government said problems with Chinese ownership were a matter for that UK Government.

Asked about the takeover, the Prime Minister's spokesman said: “We will continue to monitor the problem closely and that we won't hesitate to make use of our powers underneath the Enterprise Act but we do not consider it appropriate to intervene at the moment.

“We will be in close connection with Newport Wafer Fab but we simply cannot discuss the detail of commercial transactions or national security assessments but we've considered this condition thoroughly.”



Asked when the UK Government was “concerned the Welsh Government had allowed the takeover to get this far” the spokesman reiterated that the UK Government had “considered the matter thoroughly”.

A Welsh Government spokesman said: “The compound semiconductor technology sector is going to be in the centre of the next industrial revolution and it is of vital importance towards the Welsh economy. This is exactly why we made a good investment in order to save this strategically-important facility nearly 4 years ago.

“This announcement will secure 400 jobs and will see a further significant investment being produced in the ability including in new equipment to develop the company. Included in this the Welsh Government will recover its initial investment plus interest. Issues of Chinese ownership really are a matter for that UK Government.”

Achim Kempe, Nexperia's chief operations officer, said: “We are extremely excited to include Newport as part of our global manufacturing footprint. Nexperia has ambitious growth plans and adding Newport supports the growing global demand for semiconductors. The Newport facility has a very skilled operational team and has a vital role to experience to make sure continuity of operations. We look forward to building a future together.”

Paul James, operations director at the Newport site, added: “The acquisition is great news for that staff here in Newport and also the wider world of business in the region as Nexperia is providing much-needed investment and stability for future years.

“We are searching toward becoming area of the global Nexperia team and therefore are keen to help keep the current workforce. Additional local resources are usually necesary too. We are also pleased that we will be able still contribute to the neighborhood ecosystem.”