London Daily

Focus on the big picture.

China Accuses UK of 'Abusing State Power' to Block Microchip Factory Takeover

China Accuses UK of 'Abusing State Power' to Block Microchip Factory Takeover

The UK's Department for Business, Energy and Industrial Strategy ordered Nexperia, a Dutch subsidiary of China's Wingtech, to sell its controlling stake in a Welsh microchip precursor factory this week for fear it could "undermine UK capabilities" in fields such as telecoms and facial recognition.
Beijing has said Downing Street "abused state power" by blocking the takeover of a microchip factory in Wales.

British Business Secretary Grant Shapps ordered Shanghai-based Wingtech Technology to sell off Newport Wafer Fab, the UK's largest semiconductor producer, on Wednesday.

Wingtech's Dutch subsidiary Nexperia bought an 86 per cent stake in Wafer Fab in July 2021 for a reported sum of around £63 million.

“The UK has overstretched the concept of national security and abused state power to directly interfere in a Chinese company’s normal investment cooperation in Britain,” said Chinese Foreign Ministry spokeswoman Mao Ning.

“This violates the lawful rights and interests of the company concerned and the market economy principles and international trade rules which has long claimed itself to be a champion of,” Mao added.

The Newport plant makes silicon "wafers" which are turned into microprocessor and memory chips at other sites.

Wingtech has vowed to appeal Schapps' decision, which was made after a lengthy review which concluded that there was a risk to national security from the possible use of the factory to make chips used to control 5G telecommunications, electric vehicles and facial recognition systems “and the potential for those activities to undermine UK capabilities.”

Prime Minister Rishi Sunak dubbed China Britain's “biggest long-term threat" in July as he was jockeying for leadership of the ruling Conservative Party. But at the G20 summit on the Indonesian island of Bali this week he softened that rhetoric slightly to call Beijing a “systemic challenge”.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Boris Johnson Claims He Found Listening Device in Bathroom After Netanyahu's Visit
Iran's Supreme Leader Khamenei declared today: "If Israel retaliates, we will raze Tel Aviv and Haifa to the ground."
Scott Jennings leaves CNN panel speechless as he tears apart Tim Walz's flimsy excuse of being "too dumb to tell the truth."
GP Accused of Murder Plot with Lethal Injection
Key Insights from Boris Johnson's Memoir 'Unleashed'
Bank of England Governor Warns of Potential Middle East Oil Shock
BBC Cancels Interview with Boris Johnson Due to Briefing Note Mix-up
Boris Johnson's Memoir Unleashes Controversial Claims
Labour Peer Lord Alli Under Investigation
Laura Kuenssberg Cancels Scheduled Interview with Boris Johnson
Conservative Leadership Candidates Propose Reforms Post-Election Defeat
UK Prime Minister Seeks Closer UK-EU Relations
Labour MP Proposes New Assisted Dying Legislation
Rise in Vaping Among Young Adults Who Never Regularly Smoked
UK Reaffirms Commitment to Falkland Islands Amid Chagos Deal
Proposal for Reusing Graves to Address Burial Space Shortages
Dominican Republic Announces Massive Deportation Operation of Haitian Migrants
EU Urges UK PM Keir Starmer to Consider Youth Mobility Scheme
British Forces Help Thwart Iranian Missile Attack on Israel
Simon Case Rejoins Garrick Club Amid Mixed Reactions
Investigation into Labour Donor Waheed Alli's Register of Interests
Iceman Drug Boss Jailed: Major Crackdown on £76M Trafficking Operation
UK Evacuates Citizens from Lebanon Amid Growing Tensions
Rise in Vaping Among Non-Smokers in England
Earth Faces Severe Geomagnetic Storm from Solar Flare
Keir Starmer’s Corruption Exposed: Bribes (Yet Again), Broken Promises, and a Rigged System Shielding the Powerful
Bank of America Outage Leaves Customers Unable to Access Accounts, Sparks Concern
Iranian Mullah Claims Israel Used Genies to Hunt Hezbollah Leader
Privacy Concerns Over AI Monitoring of UK Bank Accounts
Robert Jenrick Reveals Daughter's Middle Name as Thatcher
Badenoch Criticizes Civil Servants, Jokes They Are 'Prison-Worthy'
UK Treasury Plans Major Infrastructure Cuts
Kemi Badenoch Criticizes Civil Servants at Conservative Party Conference
Thames Mudlarking Permits Resumed with New Restrictions
Decline in Education for Youth Offenders in England
Jimmy Carter Celebrates 100th Birthday
Iran's Missile Attack on Israel: Defeated but a Significant Escalation
Iran President Lauds Missile Attack on Israel as Decisive Response
Russia Criticizes Biden's Middle East Policies After Iran Attacks Israel
US Dockworkers Strike Halts Half of Nation’s Ocean Shipping
Boris Johnson claims in memoir Queen Elizabeth II had bone cancer
Missile Attack on Israel: A Turning Point for the Ayatollah’s Regime?
Teachers in England Approve 5.5% Pay Rise
Robert Jenrick Criticized for Statements on UK Special Forces
Robert Jenrick Faces Transparency Issues Over Campaign Donations
Phillip Schofield Addresses Firing from ITV
UK Charters Evacuation Flight for Britons in Lebanon
UK Shop Prices Fall at Fastest Rate Since 2021
Keir Starmer Urged to Address Rising Energy Bills
Tom Tugendhat Warns Against Tories Turning into Reform UK
×