Sale of Britain’s largest microchip factory to be reviewed by UK government

Nexperia is a Dutch chip company owned by Shanghai-based Wingtech and plans were confirmed last year to acquire Newport Wafer Fab, the UK’s largest chip producer, for £63m.

In July, Boris Johnson had said the National Security Adviser would look at the takeover of Newport Wafer Fab, as the Foreign Affairs Committee warned the sale to Nexperia could potentially compromise national security. But in April this year MPs expressed concern that this review had not been carried out.

The government has powers under the National Security and Investment Act 2021 to scrutinise and – if necessary – intervene in qualifying acquisitions on national security grounds.

On Wednesday, Kwarteng announced that there would be a “full assessment” of the acquisition.

“We welcome overseas investment, but it must not threaten Britain’s national security,” Kwarteng said on Twitter.

The BBC reports that the assessment could force the company to reduce its shareholding back to the 14% it originally owned.

When asked, Boris Johnson said he did not want to drive away Chinese investment because of “anti-China spirit”.

The government has 30 working days (extendable by up to a further 45 working days) to carry out that assessment. The Department for Business, Energy & Industrial Strategy said that the process is already underway.