London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Chinese buyout of Newport microchip plant a 'security risk'

Chinese buyout of Newport microchip plant a 'security risk'

The takeover of Britain's largest microchip plant by a Chinese-owned company must be reversed, the UK government has said.

Newport Wafer Fab was acquired by Dutch-based technology company Nexperia, a subsidiary of Shanghai listed Wingtech, in July 2021.

However, Nexperia must now sell 86% of its stake "to mitigate the risk national security" following a review.

The firm said it was "shocked" and would appeal against the decision.

The semiconductors, or chips, made there are used in modern electronics ranging from smartphones to household equipment and cars.

The deal came under scrutiny amid an ongoing global shortage of computer chips which has been exacerbated by the pandemic.

Concerns were raised that the home-grown technology, considered to be of strategic importance, would become more accessible to China under Nexperia.

In its decision, the UK government said the takeover of Newport Wafer Fab created two risks to national security.

The first related to Nexperia's development of the Newport site, which the government said could "undermine UK capabilities" in producing compound semiconductors.

The second, the plant's location as part of a semiconductor cluster on the Duffryn industrial estate, could "facilitate access to technological expertise and know-how".

It said the close links that existed in Newport "may prevent the cluster being engaged in future projects relevant to national security".

The Newport plant employs more than 500 people and, at the time of the takeover, was producing about 35,000 wafers a year.


Nexperia employs more than 1,500 workers in Newport and Manchester

The UK government had faced pressure to intervene, not least from the Commons Foreign Affairs Committee which said that Nexperia's takeover represents the sale of "one of the UK's prized assets" to a strategic competitor and potentially compromised national security.

A report in April said an investigation pledged by then-Prime Minister Boris Johnson by the National Security Advisor had not happened.

However, the decision was called in by the then-Business Secretary Kwasi Kwarteng in May on national security grounds.

It was left to his successor Grant Shapps to announce the decision following delays due to the changes in prime minister and the cabinet.

Nexperia said it did not accept the national security concerns and criticised the UK government for not entering "meaningful dialogue".
Toni Versluijs said two previous reviews found no reasons to block the acquisition


Toni Versluijs, head of its 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."

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×