A new £300 million masterplan aims to stop a Chinese-owned company from acquiring the UK’s largest semiconductor manufacturing. A MOVEMENT is beginning to prevent the UK’s largest semiconductor manufacturer from being taken over by a Chinese company, citing national security concerns. The sale of Newport Wafer Fab’s south Wales business to Nexperia, a Dutch-founded but Chinese-owned technology company, provoked outrage among certain Tory MPs. Every week, the factory produces around 8,000 wafers, which are microchip boards used in computing. Companies domiciled in China are compelled by Chinese law to help the central government if requested. Boris Johnson ordered a national security review of the pact after concerns were raised. Nexperia, which reportedly offered £65 million for the plant, claimed it would keep the 400 employees in place. Ron Black, the former CEO of Imagination Technologies, is organizing a competing bid. He told the Daily Telegraph that if the government blocks Nexperia’s acquisition, a consortium of six corporations is ready to make an offer. “What we’re aiming to do is provide an option to the current arrangement if either Nexperia or the Government concludes that an alternative is necessary,” he told the daily. “These businesses are looking for long-term strategic partnerships.” Mr. Black didn’t say whether Nexperia should be permitted to purchase Newport Wafer Fab, but he did stress the need of security. “The premise I would always start with is that it is a national security problem, unless proven otherwise,” the businessman said. “The risk is asymmetric since getting it wrong could have catastrophic consequences.” If their bid is approved, Nexperia has promised to invest an additional £40 million in the site. The corporation stated that it intends to run the business for “generations,” and that it plans to stay in the area. The arrangement has been criticized by Tom Tugendhat, a Tory MP and chair of the Foreign Affairs Select Committee. “Many of our allies have raised grave misgivings about this deal,” he continued. “Since its introduction in April, this is the first true test of the new legislation. The government has yet to explain why it is turning a blind eye to Britain’s largest semiconductor foundry going into the hands of a company from a country with a history of exploiting technology for geopolitical gain.” Conservative MP Bob Seely expressed concerns, drawing a comparison between security procedures in America and the US. “I fear we are being.” Brinkwire Summary News, he said.
