British Economy Minister Grant Shapps reversed China’s takeover of the microchip factory. He does so for reasons of national security.
It’s about Newport Wafer Fab in Wales, the UK’s largest wafer maker. In July last year, it was wholly owned by Dutch chipmaker Nexperia, which bought an additional 86% stake for £63m. Nexperia itself is part of the Chinese conglomerate Wingtech Technology, which has ties to the Chinese Communist Party.
Nexperia now has to get rid of the interest it earned last year. A UK government spokesperson said: “After a detailed assessment, the Economy Minister has decided to issue final instructions requiring Nexpria to sell at least 86 percent of Newport Wafer Fab.”
Intervention is necessary “to prevent potential risks to national security.” Not only does the British government fear that technology and know-how could fall into the hands of the Chinese, but also that the Welsh site may not be involved in future national security projects.
In its response, Nexperia said it was “shocked” by the decision and would appeal. She also says that she submitted several proposals to the government, but they were not accepted. Last week, the German government also blocked two Chinese investments in the semiconductor sector.
It’s about Newport Wafer Fab in Wales, the UK’s largest wafer maker. In July last year, it was wholly owned by Dutch chipmaker Nexperia, which bought an additional 86% stake for £63m. Nexperia itself is part of the Chinese conglomerate Wingtech Technology, which has ties to the Chinese Communist Party. Nexperia now has to get rid of the interest it earned last year. A UK government spokesperson said: “After a detailed assessment, the Economy Minister has decided to issue final instructions requiring Nexpria to sell at least 86 percent of Newport Wafer Fab.” Intervention is necessary “to prevent potential risks to national security.” Not only does the British government fear that technology and know-how could fall into the hands of the Chinese, but also that the Welsh site may not be involved in future national security projects. In its response, Nexperia said it was “shocked” by the decision and would appeal. She also says that she submitted several proposals to the government, but they were not accepted. Last week, the German government also blocked two Chinese investments in the semiconductor sector.
