Nexperia must give up 86% stake in British microchip company
The acquisition of the former Newport wafer manufacturing facility has been cleared after years of uncertainty.
When a silicon chip factory was acquired by Nexperia in July 2021, members of Congress and ministers expressed deep national security concerns.
The Netherlands-based technology company is a subsidiary of Shanghai-listed Wingtech.
As a result of the review, the British government forced the company to sell an 86% stake in the factory due to its relationship with China.
Whitehall has warned that China’s influence could undermine its ability to produce semiconductors – the essential “chips” used in modern digital devices from smartphones to home appliances to cars – which are seen as a strategic technology. There were concerns that there would be.
Politicians also spoke of concerns about transferring critical technology knowledge to Chinese-owned companies.
In November, US electronics giant Vishay announced it would buy the factory outright for a reported $177m (£142m), securing more than 400 jobs.
However, the agreement still required national security clearance from the Cabinet Office.
Now, after nearly four months of delay, Secretary of State Oliver Dowden has issued a consent order.
The Duffrin Industrial Park site has been named Newport Vishay by its new owners.
The Cardiff Street chip factory started life as Inmos in 1980, but has changed hands a number of times in the decades since.
The UK’s largest semiconductor manufacturer.
Vishay says it wants to expand the facility with a focus on compound semiconductor research and development.
It is expected to bring more high-skilled, high-paying manufacturing jobs to Newport.
In the world of electronic components, Vishay is a highly regarded brand alongside other world leaders such as Samsung, Panasonic, and Texas Instruments.
The UK government had used national security laws to order Nexperia to sell the site in 2022, leaving workers concerned about the future of the site.
Nexperia employs more than 1,500 people in Newport and Manchester
The consent order now rubber-stamps the new U.S. ownership, but it comes with several conditions.
The UK Government will need to be informed if Vishay plans to enter into any future sale, transfer or lease agreements to third parties giving them access to the factory.
Ministers also want intellectual property and any confidential information currently owned by Vishay to be tightly controlled.
Labour’s shadow Wales secretary Jo Stevens said the consent order was “long overdue good news” for Newport workers, but accused the UK government of “dragging its feet”. .