London Daily

Focus on the big picture.
Thursday, Sep 04, 2025

Chinese takeover of UK's largest microchip producer faces national security review

Chinese takeover of UK's largest microchip producer faces national security review

A review of the reported £63m deal had been demanded by MPs while a former National Cyber Security Centre chief had warned it posed a greater threat to British interests than Huawei's involvement in the 5G network.

The acquisition of the UK's biggest microchip factory, Newport Wafer Fab, by a Chinese-owned technology company is to undergo a national security assessment.

The business secretary Kwasi Kwarteng announced the move after Nexperia, which is headquartered in the Netherlands but part of Shanghai-based Wingtech, completed the purchase in July last year for a reported £63m.

Mr Kwarteng wrote on his Twitter account: "There will now be a full assessment under the new National Security and Investment Act.

"We welcome overseas investment, but it must not threaten Britain's national security."

The Act gives the government 30 days to investigate and the power to intervene retrospectively.

The factory produces semiconductors - a key component in electronic products from top end smart phones to microwave ovens.

The move follows a decision by Boris Johnson last year to ask national security adviser Sir Stephen Lovegrove to look at the deal amid widespread concern over its potential implications.

Ciaran Martin, the former chief executive of the National Cyber Security Centre, had described the acquisition as posing a greater threat to British interests than Huawei's involvement in the 5G network.

MPs had also called on ministers to intervene.

The Commons Foreign Affairs Committee demanded tougher action to stop strategically important companies being sold overseas and had questioned, just last month, why no review had been announced.


Its chairman, Tom Tugendhat, welcomed the business secretary's decision: "We need to maintain a base to build on to ensure the UK is resilient. This isn't just about security today but independence tomorrow," he wrote.

He had voiced concern that competitors, particularly in China, had a track record of using foreign investments to gain access to important technologies and information.

Nexperia was yet to comment.

It has consistently argued that the company - and its parent firm - are separate from the Chinese state.

Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×