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Chinese-owned Nexperia said to buy UK’s largest chip maker Newport Wafer Fab for US$87 million
- Dutch firm Nexperia, owned by China-based Wingtech, is still in talks to buy the UK company, according to CNBC
- News of the deal comes amid heightened tensions between Beijing and Washington, which has scrutinised Chinese deals to buy overseas semiconductor firms
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Che Panin Beijing
Dutch semiconductor company Nexperia, a subsidiary of Chinese technology firm Wingtech Technology, is said to be in talks to acquire Newport Wafer Fab (NWF), the UK’s largest chip maker, for £63 million (US$87 million), according to a report from CNBC citing anonymous sources on Friday.
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News of the deal comes as Beijing pushes for technological self-reliance, which has led to resources being poured into developing the domestic semiconductor industry. US sanctions have cut off Chinese companies from chips made with technology of US origin as part of a protracted tech war.
Heightened geopolitical tensions remain a challenge for the acquisition. Just last month, the US said it would review the proposed acquisition of South Korean chip maker Magnachip by Chinese tech-focused private equity fund Wise Road Capital despite the fact that the deal did not involve cutting-edge technology.
Stewart Randall, head of electronics and embedded software at consultancy Intralink, said the Magnachip deal could be a hard sell for US regulators in the current environment. “Not so long ago this type of deal would not be looked at,” he said.
CNBC reported that some UK experts have expressed national security concerns about the deal.
A Nexperia spokesperson said the company was still in conversation with NWF and the Welsh government, declining to comment further until a conclusion has been reached, according to CNBC.
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Wingtech did not immediately respond to an emailed request for comment on Saturday.
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