The UK Government has told Nexperia that its buyout of Newport Wafer Fab near Tredegar Park must be reversed to “mitigate the risk to national security”.
Nexperia, a subsidiary of the Chinese company Wingtech, bought an 86% stake in the manufacturing company which is one of the largest manufacturers of computer chips in Britain.
Despite getting backing from the Welsh Government, the deal poses a significant risk to UK security in that could allow access to technical expertise and know-how and also undermine UK capabilities.
Commons Foreign Affairs Committee described Nexperia’s takeover represents the sale of “one of the UK’s prized assets” to a strategic competitor which could potentially compromise national security.
Toni Versluijs, head of its Nexperia’s UK operations, said: “We are genuinely shocked. The decision is wrong, and we will appeal to overturn this divestment order to protect the over 500 jobs at Newport.
“The decision is disproportionate given the remedies Nexperia has proposed. It is wrong for the employees, for the UK semiconductor industry, for the UK economy and for the UK taxpayer – who could now be faced with a bill of over £100m for the fallout from this decision.
“We rescued an investment-starved company from collapse. We have repaid taxpayer loans, secured jobs, wages, bonuses and pensions and agreed to spend more than £80m on equipment upgrades. The deal was publicly welcomed by the Welsh government.”
In a statement, a government spokesperson said: “The UK has a number of strengths within the semiconductor sector, including in south Wales, and through our forthcoming semiconductor strategy we will enable this technology to continue to support the UK and global economy.”
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