Newport Wafer Fab: Semiconductor plant takeover gets go-ahead

Newport Wafer Fab was bought in July 2021 by Nexperia

The takeover of the former Newport Wafer Fab factory has been cleared after years of uncertainty.

MPs and ministers expressed deep national security concerns when the silicon chip plant was bought in July 2021 by Nexperia.

The Dutch-based technology company is a subsidiary of Shanghai-listed Wingtech.

After a review, the UK government forced the firm to sell its 86% stake in the plant because of its links to China.

There was concern in Whitehall that influence from China could undermine the UK's ability to produce semiconductors - the essential "chips" used in modern digital devices, from smartphones to household appliances and cars - which is seen as a strategic technology.

Politicians also spoke of their fears of transferring knowledge of a critical technology to a Chinese-owned entity.

In November, US electronics giant Vishay declared it would buy the plant outright for a reported $177m (£142m), securing more than 400 jobs.

But the deal still required national security clearance by the Cabinet Office.

• UK orders Chinese firm to sell Welsh tech plant

• Planned job losses blamed on government restrictions

Now, after a four-month wait, Secretary of State Oliver Dowden has issued a consent order.

The site on the Duffryn Industrial Estate has now been branded Newport Vishay by its new owners.

The chip factory on Cardiff Road began as Inmos in 1980 but has changed hands numerous times in the decades since.

It is the UK's largest manufacturer of semiconductors.

Vishay says it wants to expand the site, with an emphasis on research and development in compound semiconductors.

It is promising to bring more high-skilled, well-paid manufacturing jobs to Newport.

In the world of electronic components, Vishay is a highly respected brand along with other global leaders such as Samsung, Panasonic and Texas Instruments.

The UK government had used national security legislation to order Nexperia to sell the site in the 2022 and workers feared for the site's future.

A buyout by US electronics giant Vishay has secured more than 400 jobs

The consent order now rubber stamps the new US ownership, but it comes with some conditions.

The UK government must be informed if Vishay plans to enter into any future agreement to sell, transfer or lease to any third party that would give them access to the factory.

Ministers also want the intellectual property and any sensitive information now owned by Vishay to be tightly controlled.

Economy Minister Vaughan Gething said: "I am pleased that the long-overdue decision to permit the acquisition of Newport Wafer Fab by Vishay International has now been taken.

"Today's news brings security to a hugely talented workforce after a long period of uncertainty and I hope they can look forward a new sense of optimism."

Labour's shadow Welsh Secretary, Jo Stevens, agreed but accused the UK government of "foot-dragging" on the matter.

Welsh Secretary David TC Davies said: "The conclusion of the necessary national security assessment into the acquisition of Nexperia will come as welcome news for the workforce and for the wider area.

"I am pleased that the sale can now move ahead and I look forward to hearing more about Vishay Intertechnology's plans."