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Saturday, January 28, 2023

The UK ordered the sale of Nexperia, a subsidiary of a Chinese company, to Britain’s biggest chip maker

UK government orders Nexperiaa company Owned by a Chinese business group, the largest British chipmaker sells, The company, now owned by Nexperia, will have to be handed over to another owner due to national security concerns, according to UK officials.

Nexperia is a Dutch subsidiary of Shanghai-based semiconductor maker Wingtech and will now be forced to sell it.”at least 86%» Of its shares in the Newport Semiconductor factory, more than a year after Nexperia took control of the factory. This was announced by Grant Shapps, Secretary of State for Business, Energy and Industrial Strategy, UK government.

Among other reasons for ordering the sale, Shapps pointed to the location of the factory, which is part of an industrial cluster of technology companies based in the Welsh city of Newport with a very high level of specialisation. For him, “The relationship between the plant and the cluster may prevent the cluster from engaging in future projects that are relevant to national security,

In addition, he says, he worries that the company may begin work on more advanced compound semiconductors in Newport, and that about “The potential for such activities to undermine UK capabilities,

Given this situation, Nexperia claims to be affected by the decision, which they plan to appeal. They cite two previous safety reviews that flagged purchases to complain about this mandate, noting that “Nexperia does not acknowledge the potential national security concerns raised. The extensive precautions offered by Nexperioa to address government concerns have been completely ignored,

On the other hand, the company indicated that it had “offerednot to carry out activities that could be a potential concern, and give the UK government direct control and involvement in the management of Newport,

Meanwhile, the Tony Versluijs, head of Nexperia in the UKhas said the company is going to try to reverse the order, suggesting it could put more than 500 jobs at risk, also noting that «The decision sends a clear signal that the UK is closed for business. We saved a money hungry company from collapse. The people who sold us the company agreed with us that this was the only viable solution, and the deal was publicly welcomed by the Welsh Government.,

Newport Wafer calls itself the UK’s largest semiconductor manufacturing facility. According to Nexperia, another semiconductor manufacturer based in the Netherlands, it has a history of supplying components to automotive and medical companies. Seized full control of the Newport factory in July 2021After dealing with its previous owners as a customer and second largest shareholder.

World Nation News Desk
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