UK To Lose Huge Microchip Plant If Handover To China Isn't Stopped

According to a report, the Newport Wafer Fab facility in South Wales may be forced to relocate if the sale to Chinese buyers is not overturned.

Photo Insert: The Nexperia plant makes semiconductors, which are essential components of everything from smartphones to televisions and automobiles.

Nexperia, a subsidiary of the Chinese technology firm Wingtech, bought the plant last year, Jacob Paul reported for Daily Express.

However, in January, Business Secretary Kwasi Kwarteng was given the authority to intervene in the sale, and he is said to be deliberating over the choice. He may be able to halt the sale on security grounds under the National Security and Investment Act.

Researchers at the Policy Exchange think group have cautioned Kwarteng that if he does not comply, Nexperia will most likely attempt to relocate the facility.

The plant makes semiconductors, which are essential components of everything from smartphones to televisions and automobiles. In the midst of a global semiconductor crisis, the think tank suggested that this could be part of China's aim to reduce the demand for semiconductor imports.

"There is a strong possibility that when Wingtech's Shanghai plant reaches full capacity, the company might close Newport and shift production to China, thus supporting China's drive to reduce semiconductor imports," Policy Exchange researchers said.

Kwarteng, who launched a security review in March, had already come under intense pressure from MPs to block the sale. Lord Alton, a crossbench peer, expressed concern back in April: “I have tabled a question in Parliament today asking why UK ministers have quietly approved this Chinese microchip factory takeover...As we have seen with telecoms and nuclear power it’s madness to sell vital UK interests to companies in hostile states.”

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