Chinese-owned manufacturer Nexperia has acquired UK's largest producer of semiconductors, Newport Wafer Fab (NWF) in a deal that has prompted a senior Tory MP to call for the government to review the sale during an increasingly severe global shortage of computer chips. Nexperia announced that it had taken full control of NWF, the largest producer of silicon chips in the country.
Tory MP for Tonbridge and Malling and the chair of the foreign affairs select committee, Tom Tugendhat said in an interview that he would be very surprised if the deal was not being reviewed under the National Security and Investment Act, new legislation brought in to protect key national assets from foreign takeover.
He said, “The semiconductor industry sector falls under the scope of the legislation, the very purpose of which is to protect the nation’s technology companies from foreign takeovers when there is a material risk to economic and national security.” Nexperia meanwhile, said that the deal would help it to keep pace with global semiconductor demand.
Chief operations officer at Nexperia, Achim Kempe said, “Nexperia has ambitious growth plans and adding Newport supports the growing global demand for semiconductors. The Newport facility has a very skilled operational team and has a crucial role to play to ensure continuity of operations.” The deal is reportedly valued at £63m. Operations director at NWF, Paul James said the deal will secure vital investment for the business.
He said, “The acquisition is great news for the staff here in Newport and the wider business community in the region, as Nexperia is providing much-needed investment and stability for the future. We are looking forward to becoming part of the global Nexperia team and are keen to keep the current workforce. Additional local resources may be required too.”
