UK blocks Chinese purchase of country’s largest microchip factory
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British government demanded from a company with Chinese participation to sell the country’s largest microchip manufacturing plant, Newport Wafer Fab. Dutch Nexperia, owned by China’s Wingtech Technology, previously held a 14% stake in Newport Wafer Fab and bought the remaining 86% for £63m ($75m) last year. Now British Business Secretary Grant Shapps has demanded that Nexperia, which has already changed its name to Nexperia Newport Limited, sell at least the same 86% stake in the plant, leaving itself only a minority stake. The plant is located in Wales and produces 32,000 semiconductor wafers per month.
“We welcome foreign trade and foreign investment that supports growth and (creates.— ”b”) workplaces. But in cases where we see a risk to national security, we will act decisively,” Mr. Shapps said. The head of the British division of Nexperia, Tony Versluis, called the government’s decision wrong and said that the company was going to appeal it.
The expert believes that the situation around the Newport Wafer Fab reflects the general concerns of Western countries about China’s desire to gain access to advanced Western technologies in the production of semiconductors. In early October, the US government tightened restrictions by barring US companies from selling US-based semiconductors to Chinese companies without obtaining export licenses. Last week the German authorities blocked opportunity for Chinese investment in two local semiconductor manufacturers.
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