Hong Kong, China: The British government has ordered a Chinese-owned business to reverse its acquisition of the country’s largest chipmaker, citing national security concerns.
The UK Secretary of State for Business, Energy, and Industrial Strategy, Mr. Grant Shapps, instructed Nexperia, a Dutch affiliate of Shanghai-listed semiconductor manufacturer Wingtech, to sell “at least 86 percent” of its ownership in Newport Wafer Fab more than a year after taking complete control of the site.
In a statement, Mr. Shapps expressed his concern that the corporation would begin developing more sophisticated so-called “compound” semiconductors at the Newport location and about “the potential for those activities to undermine UK capabilities.”
Mr. Shapps also mentioned the factory’s location, which is part of an industrial cluster of highly specialized technology companies in Newport, a city in south Wales. According to the government, “The links between the site and the cluster may prevent the cluster from being engaged in future projects relevant to national security.”
The British action highlights growing Western anxiety over Chinese connections to vital infrastructure and technologies. The German government last week halted the sale of a semiconductor facility to a Chinese-owned tech company due to national security concerns. Two major chipmakers in the US, Nvidia, and AMD, were given an order in August to stop exporting some high-performance chips to China.
In a statement released recently, Nexperia remarked that it was “shocked” by the decision and would file an appeal. It cited “two prior security reviews” as evidence that the transaction had already been approved.
Nexperia does not accept the potential national security concerns raised. The far-reaching remedies Nexperia offered to address the government’s concerns have been entirely ignored fully.
Nexperia Officials highlighted.
In its statement to the media, the company revealed that it had offered “not to conduct the activities of potential concern and to provide the UK government with direct control and participation in the management of Newport.”
Mr. Toni Versluijs, the UK Manager for Nexperia, declared that the business would try to get the decision overturned since it would endanger more than 500 employees.
Mr. Versluijs also commented that, “This decision sends a clear signal that the UK is closed for business. “
With more than 35,000 wafer starts produced each month, Newport Wafer bills itself as the UK’s largest semiconductor manufacturing facility. Nexperia claims that the firm has a history of delivering parts to businesses in the automotive and medical industries.
Nexperia is a Dutch semiconductor manufacturer headquartered in Nijmegen. It became the sole owner of the Newport site in July 2021, after working with its former owners as a customer and second-largest shareholder.
In its statement to the media, the company revealed that “We rescued an investment-starved company from collapse. Those who sold the business to us agreed that it was the only viable solution, and the Welsh government publicly welcomed the deal. “