The UK government on Nov. 16 ordered a Chinese company to sell most of a Welsh semiconductor plant it had acquired, ruling the takeover breached national security laws.
Nexperia Newport Limited, previously named Newport Wafer Fab (NWF), is the UK’s largest microchip company.
Initially, the government concluded after a probe in March by the UK’s national security adviser there were insufficient reasons to block the deal because it was believed the company produced outdated technology.
But with multiple contracts with the UK government, including defence-related projects, the government has been forced to investigate the deal again.
In its notice of final order, the BEIS said that Business Secretary Grant Shapps considers that a risk to national security relates to “technology and know-how that could result from a potential reintroduction of compound semiconductor activities at the Newport site, and the potential for those activities to undermine UK capabilities.”
The notice also said the location of the site “could facilitate access to technological expertise and know-how in the South Wales Cluster (“the Cluster”), and the links between the site and the Cluster may prevent the Cluster being engaged in future projects relevant to national security.”
It’s the sixth notice the government has issued to Chinese companies under its new National Security and Investment Act.
On July 20,then-Business Secretary Kwasi Kwarteng issued an order under the new law to block Beijing Infinite Vision Technology Co. from buying vision-sensing technology from the University of Manchester.
On Sept. 14, then-Business Secretary Jacob Rees-Mogg imposed restrictions on the acquisition of the Stonehill project, an energy storage project in Wiltshire, by Beijing-controlled Stonehill Energy Storage Ltd. The restrictions are similar to the ones imposed on the acquisition of XRE Alpha Limited.
On Oct. 10, he imposed restrictions including informations sharing on the acquisition Ligeance Aerospace Technology Co. Ltd by Sichuan Development Holding Co., Ltd, which involves two UK-bases subsidiaries Gardner Aerospace Holdings Limited and Gardner Group Limited.
Nexperia said it was “shocked” by the UK government’s decision.