Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Chinese tech firm Nexperia told to sell majority stake in UK microchip factory over 'national security risk'

Chinese tech firm Nexperia told to sell majority stake in UK microchip factory over 'national security risk'

Chinese owner ordered to reduce stake in Newport Wafer Fab semiconductor factory "putting the livelihoods of [workers] and their families, as well as more than £100m of taxpayers' money, completely unnecessarily at risk"
A Chinese-owned tech company has been told to sell the majority of its stake in a UK silicon chip factory due to security concerns.

The government has said Nexperia must reduce its stake in Newport Wafer Fab by 86%, back to its previous holding of just 14% when it took over the firm in 2021, in an effort to "mitigate the risk to national security".

Nexperia responded to the announcement with shock and frustration, saying it does not accept the state's rationale and 500 jobs are now at risk.

"The far-reaching remedies which Nexperia offered to fully address the government's concerns have been entirely ignored," the company said in a statement.

"The UK government chose not to enter into a meaningful dialogue with Nexperia or even visit the Newport site.

"More than 500 employees in Newport also raised their own significant concerns about such a divestment - the government has chosen not to listen to them and instead taken this decision which puts the livelihoods of them and their families, as well as more than £100m of taxpayers' money, completely unnecessarily at risk."

The company said it will challenge the order in an effort to keep the factory and jobs.

The acquisition of the Newport Wafer Fab factory had been investigated by government over national security concerns.

The factory has for decades been a critical site, producing tiny silicon chips. Currently there is a global shortage of the semiconductors that go in cars and everyday electronics.

The investigation took place under the new National Security and Investment Act, which grants power to the government to retrospectively intervene in a deal. Nexperia had already completed its purchase of Newport Wafer Fab for a reported £63m.

Security concerns were raised by the industry and MPs alike.

Wednesday's statement from the Department for Business Energy and Industrial Strategy identified security concerns, saying that potential development of compound semiconductors at the Newport site could "undermine UK capabilities".

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

The former chair of the Commons Foreign Affairs Committee, Tom Tugendhat had expressed concern that companies particularly in China, had a track record of using foreign investments to gain access to important technologies and information.

An announcement of the investigation results has been continuously delayed. The original deadline for a decision was due in June, but the BEIS asked for a 45-day deadline to make its decision.

It was beset by further delays as the Tory leadership contest trundled on over the summer and the government played political musical chairs following the departure of former chancellor Kwasi Kwarteng and subsequently former prime minister Liz Truss.

The extended September and October deadlines passed without decision.

What happens next is unclear. The Financial Times reported that previous owner Nelson hopes to buy back the company. Under the terms of Nexperia's takeover Nelson has the first opportunity to buy it back.

Nexperia has consistently said it and its parent company Wingtech are separate from the Chinese state.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
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
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'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
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
×