Nexperia must sell at least 86% of the semiconductor manufacturer

“TheAfter a detailed national security assessment, Secretary of State for Business, Energy and Industrial Strategy [Grant Shapps] has decided to issue a ‘final order’ requiring Nexperia to sell at least 86% of Newport Wafer Fab, to protect against potential risks to national security,” a UK government spokesperson said in a statement.

In the directive, Grant Shapps noted that there was a risk related to “technology and ‘knowledge’ (…) that could jeopardize UK capabilities”.

Dutch company Nexperia, owned by Chinese smartphone giant Wingtech, has completed the purchase of the Newport Wafer Fab, for an undisclosed amount, in July 2021.

This government order comes at a time when relations between Beijing and London are increasingly tense and when there is scrutiny of Chinese companies’ investments abroad.

In 2020, London banned Chinese telecoms giant Huawei from deploying 5G broadband equipment in the UK, after concerns expressed by the US about the risks of Chinese espionage, accusations that infuriated Beijing.

British Prime Minister Rishi Sunak came to power last month, striking a tough tone against China while signaling his desire to do business with the country.

Sunak had planned to hold bilateral talks with Chinese President Xi Jinping during the G20 summit, which will be held this week in Indonesia.

However, those meetings were canceled after the Western allies organized an emergency meeting in Bali, where the summit is being held, in response to an intensified Russian missile attack on Ukraine, and a missile landing in Poland, a NATO member, incidents that occurred on Tuesday.

In the statement, the British government spokesperson also stressed that the UK “will continue to stand up for business and investment while protecting national security.”

Conservative MP Alicia Cairns said: “Our long-term security depends on the resilience of our economy and that means ensuring that strategic assets are not allowed to fall into the hands of authoritarian regimes in the name of short-term progress.” Twitter social network.