Newport Wafer Fab: Chinese sale probe underway, says minister

Newport Wafer Fab makes wafers of semiconductors at its plant in Duffryn, Newport

An inquiry into the sale of a semiconductor factory to a Chinese firm is underway, a minister has said.

Last year Boris Johnson said the National Security Adviser would look at the takeover of Newport Wafer Fab.

In a report published on Tuesday, MPs said they had "no choice" but to assume the review had not yet started.

But, in the House of Lords on Thursday, Business Minister Lord Callanan said: "I can confirm the review is taking place."

Semiconductors, also known as microchips or chips, allow electricity to flow through devices and are the fundamental components of everything from smart phones to the vast data centres powering the internet.

They are seen as crucial to the UK's national security and wider global interests.

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New signs bearing the logo of Nexperia have been erected at the site where Newport Wafer Fab is based

The sale to Nexperia has caused concern amongst MPs that national security could be compromised.

Lord Callanan was asked by Labour frontbench peer Lady Blake of Leeds: "Can the government confirm on record whether the review that was promised by the prime minister took place or not?"

"I can confirm the review is taking place," he responded.

Details of a semiconductor strategy are expected to be published shortly, the minister added.

Earlier, the cross-bench peer Lord Alton of Liverpool had warned that the UK could become a "wholly owned subsidiary" of China if businesses like Newport Wafer Fab were sold to companies closely linked with the Chinese government.