UK orders full national security review for Chinese takeover of semiconductor maker Newport Wafer Fab
- Assessment of US$79 million acquisition of Britain’s biggest semiconductor maker comes under new powers conferred by National Security and Investment Act
- Review follows criticism over UK government’s apparent inaction regarding a deal involving company that some say has economic and strategic importance
Britain’s business secretary has ordered a full national security assessment of the £63 million (US$79 million) acquisition last year of the country’s biggest semiconductor maker by Nexperia, a Dutch subsidiary of China’s Wingtech Technology.
The inquiry comes after media reports in April stating the British government would not intervene in the deal following a separate review by national security adviser Stephen Lovegrove. A government spokesman said at the time that “no decisions have been made”.
“We welcome overseas investment, but it must not threaten Britain’s national security,” Business Secretary Kwasi Kwarteng said in a tweet on Wednesday.
The British government can intervene in acquisitions on national security grounds under the National Security and Investment Act, which came into full force in January and is similar to the Committee on Foreign Investment in the United States (CFIUS).
It has 30 working days to carry out the assessment, which can be extended for up to an additional 45 days.
A Nexperia spokesperson did not immediately respond to a request for comment on Wednesday.
