Chinese Takeover of UK's Largest Chip Plant Blocked on National Security Grounds

Slashdot has been covering plans for the UK's largest chip plant to be acquired by Chinese-owned firm Nexperia.

But this week the U.K. government 'has blocked the takeover of the country's largest microchip factory by a Chinese-owned firm,' CNBC reported this week, 'over concerns it may undermine national security.'

Grant Shapps, minister for business, energy and industrial strategy, on Wednesday ordered Dutch chipmaker Nexperia to sell its majority stake in Newport Wafer Fab, the Welsh semiconductor firm it acquired for £63 million ($75 million).

Nexperia is based in the Netherlands but owned by Wingtech, a partially Chinese state-backed company listed in Shanghai. Nexperia completed its acquisition of Newport Wafer Fab in 2021, and the firm subsequently changed its name to Nexperia Newport Limited, or NN.

'The order has the effect of requiring Nexperia BV to sell at least 86% of NNL within a specified period and by following a specified process,' the United Kingdom's Department for Business, Energy and Industrial Strategy said in a statement. Nexperia had initially owned 14% of Newport Wafer Fab, but in July 2021 it upped its stake to 100%.

'We welcome foreign trade & investment that supports growth and jobs,' Shapps tweeted Wednesday. 'But where we identify a risk to national security we will act decisively.'

Nexperia plans to appeal the decision.

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