The UK Government's decision to block the acquisition of the UK's biggest microchip plant on national security grounds paves the way for its former owners to reacquire the business. With investment they would aim to triple production capacity at the Newport-based fab with a focus on silicon carbide chips needed for electric vehicles.
After a protracted review of the acquisition of Nexperia Newport (previous known as Newport Wafer Fab), UK Government Business Minister Grant Shapps has ordered that Amsterdam-based Nexperia - which is owned by Chinese and Shanghai-listed tech company Wingtech - to divest at least a 86% stake in the business. It has ordered the divestment under its National Security and Investment Act.
The Department for Business, Energy said: "The Secretary of State 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, and the location of the site could facilitate access to technological expertise and know-how in the South Wales cluster (compound semiconducter), and the links between the site and the cluster may prevent the cluster being engaged in future projects relevant to national security.
