Newport Wafer Fab: Swift probe of China buyout of UK chip plant urged

Workers and customers of Britain's largest microchip factory are becoming "impatient" over a review of a Chinese-backed takeover of the company last year, the firm's UK head has said.

Dutch firm Nexperia, a subsidiary of Shanghai listed Wingtech, employs about 450 people at its Newport plant.

In May, UK ministers announced an inquiry on national security grounds into its takeover of Newport Wafer Fab.

Toni Versluijs said the inquiry caused one of his workers to fear for her job.

This was especially because she had just bought a new house, he told MPs on the Commons Business Committee.

The investigation is expected to report back or be extended this week.

Mr Versluijs said: "Last Friday one young lady in Newport stepped into her general manager's office and said 'look I've just bought a new house.'"

"'After this review will I still have a job?'"

He added that he thought "it was in everyone's interests to get clarification," and that although it was not uncommon for countries to investigate on national security grounds, any investigation needed to be conducted "swiftly".

He also revealed that Nexperia had invested £160m of "Dutch money" in its plants in Newport and Manchester over the past 15 months and rejected rumours that the company was considering moving abroad.

"We have invested big time in Manchester and Newport," he said.

"We are here to stay. We want to work in the local ecosystem and enable the local ecosystem and the UK semiconductor industry to be successful."

The semiconductors, or chips, made by Nexperia are used in a range of modern electronics from smartphones to household equipment to cars.

Mr Versluijs was pressed by the committee on how long he thought an investigation should take.

Current rules allow 30 working days with the option of a 45 working day extension.

He replied: "I believe there are international benchmarks on how it is done in other countries.

"I would suggest to benchmark and then I think we'll provide the answer."

In May, UK Business Secretary Kwasi Kwarteng announced a "full assessment" of the acquisition under the National Security and Investment Act.

"We welcome overseas investment, but it must not threaten Britain's national security," he said on Twitter.