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Newport Wafer Fab: 'No decision' on chip plant's sale to Chinese firm

Getty Images Silicon wafer semiconductorsGetty Images
Newport Wafer Fab makes wafers of semiconductors at its plant in Duffryn, Newport

Reports the takeover of the UK's largest microchip factory, Newport Wafer Fab, by Chinese-owned Nexperia has been approved have been denied.

The UK government said it was "considering the case and no decisions have been made" while Nexperia said it was unaware of such a decision.

The takeover has attracted controversy, over the firms links to China.

The website Politico had reported that the government had "quietly approved" the sale.

But the BBC understands the business secretary can, and still might, intervene.

Any such move by Kwasi Kwarteng, over concerns of key UK infrastructure falling into Chinese hands, would be under the National Security and Investment Act.

Newport Wafer Fab, which makes wafers of semiconductors at its plant in the Duffryn area of the city, employs 450 people.

Semiconductors are the fundamental components of everything from smart phones to the vast data centres powering the internet.

Nexperia has headquarters in the Netherlands and a site in Manchester.

In a statement it said: "Nexperia has read some press articles reporting about a UK governmental decision to not intervene in Nexperia's acquisition of the Newport Wafer Fab of July 2021.

New signs bearing the logo of Nexperia have been erected at the site
New signs bearing the logo of Nexperia have been erected at the site

"Nexperia has not been notified of such a decision, has not heard on this matter from the UK government since it acquired the Fab, and previously informed the government to be ready to co-operate with any review."

"Since its initial investment, Nexperia has safeguarded Newport Wafer Fab's role within the UK's semiconductor industry and has been delivering on the plans to invest in the site to make it as successful as its Manchester Wafer Fab."

The Prime Minister Boris Johnson asked the national security adviser Sir Stephen Lovegrove to examine the buyout last year.

Foreign affairs committee chairman Tom Tugendhat conceded Newport Wafer Fab was "not the most cutting edge semiconductor factory in the world".

"But it is the largest in the United Kingdom," he said.

"And if we want to have our own separate sector growing out of this, then we can't start by cutting down the very few trees there are in our forest.

"And so I think that this is one of those moments where we really do need to protect it, not for itself, but because of what it brings to the UK economy."

On Friday, Newport West Labour MP Ruth Jones said she was writing to the UK government Department for Business, Energy and Industrial Strategy seeking urgent clarity on the matter.