Last year, it emerged that Nexperia – a Dutch chip firm wholly owned by Shanghai-based Wingtech – had confirmed plans to acquire the UK’s largest chip producer, Newport Wafer Fab, in a deal valued at £63m.
But in April, MPs expressed concern that a security review into the purchase of the plant had still not been carried out despite possible links between Nexperia and the Chinese state government.
The government has powers under the National Security and Investment Act 2021 to scrutinise and intervene in acquisitions such as these on national security grounds.
“We welcome overseas investment, but it must not threaten Britain’s national security,” Kwarteng said on Twitter.
The Newport site produces over 35,000 200mm wafer starts per month, covering a wide range of semiconductor technologies. Its chips are used in power supply applications for the automotive industry, which has been struck hard by the ongoing chip shortage.
Prime Minister Boris Johnson...