Nexperia, based in the Netherlands, bought all shares of the UK firm Newport Wafer Fab last year. The UK government has ordered it to sell its majority stake in Nexperia, which is owned by Chinese Wingtech, on national security grounds.
Semiconductor maker Nexperia caught on the UK government’s radar
Wingtech, which is traded on the Shanghai stock exchange, is among the Chinese government-backed companies. Wingtech, the umbrella company of Nexperia, draws attention with its technology investments in Europe.
Nexperia, which originally owned 14 percent of Newport Wafer Fab, bought all of the shares last year. The company changed the name of Newport Wafer Fab to Nexperia Newport Limited (NNL) after the acquisition process.
Making a statement on the subject, Grant Shapps, UK Minister of Business, Energy and Industrial Strategy, said, “We welcome foreign trade and investment that support growth and employment. However, when we identify a risk to national security, we will act decisively.” made statements.
Dutch chipmaker Nexperia is asked to sell a majority stake in the company, which it bought for £63 million (about $75 million). Shapps stated that an investigation has been opened on the subject and said, “Our rules require Nexperia BV to sell at least 86 percent of NNL within a certain period and following a certain process.” said.
Nexperia’s UK country manager Toni Versluijs said the decision was wrong and the company plans to appeal. “We are really shocked,” Versluijs said on Wednesday. The decision is wrong and we will appeal to overturn this winding up order to preserve the 500+ jobs in Newport.” made statements.