Britain’s Largest Chip Manufacturer Denies It Will Move Business to Communist China

Last year, Nexperia’s acquisition of Newport Wafer Fab, Britain’s largest microchip, triggered an angry counterattack from some members of Parliament for fear that the Chinese Communist Party (CCP) will increasingly own technology assets around the world.

The Newport fab fell in financial trouble during the pandemic, allowing Netherlands-based Nexperia, which owns 14% of the Newport fab, to execute its purchase deal.

Nexperia is 100% owned by Rongke Inc. Rongke is a CCP-controlled company listed on the Shanghai Stock Exchange in Communist China.

In May, under new national security law, the UK Business Secretary ordered a detailed review of the acquisition in terms of national security. The Law granted the power granted to overturn the acquisition once an investigation has been conducted.

Under the global chip shortage and growing concern over CCP’s technology ambitions, calling out to stop acquisition increasingly.

A group of U.S. congressmen urged Joe Biden to intervene if the takeover is not reversed, saying the U.K. should be removed from a security whitelist that allows British investments in the U.S. to be exempt from scrutiny.

Wingtech owner Nexperia has denied that the company will close its Newport facility in the future.

A spokesman said this is complete nonsense. It has no factual basis and very empty conjecture. In addition to acquiring the Newport fab and repaying a £17 million loan to the Welsh Government, Nexperia has promised £160 million in new investment in its U.K. operations over the past year to help address strong global demand for semiconductors.

The investment secures 450 high-value manufacturing jobs in Newport, with a further 50 people already employed, as well as 1,000 people at the Manchester facility.

The company acquired the Newport fab for £63 million last year for the deal now is currently under review by ministers.

According to a report by researchers at the Policy Exchange, a think tank, opponents of the deal claim that when Ronco’s Shanghai plant reaches full production capacity, the company is likely to close its Newport factory and move production to Communist China, thereby supporting its efforts to reduce semiconductor imports.