Nexperia: Newport MP says Chinese firm should keep city chip plant

Nexperia has been told to give up 86% of its stake in the British microchip company

A decision to force a Chinese firm to reverse its takeover of the UK's largest chip plant has left hundreds of workers worrying about their jobs, an MP has said.

Labour MP Ruth Jones has backed moves by Nexperia to keep its ownership of Newport Wafer Fab.

The UK government ordered the company to sell 86% of the site, citing national security.

A minister said Ms Jones was not privy to details that informed the decision.

Newport Wafer Fab was acquired by Dutch-based technology company Nexperia, a subsidiary of Shanghai listed Wingtech, in July 2021.

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Semiconductors, or chips, made at the factory are used in millions of electronic products, from smartphones to household equipment and cars.

The plant specialises in making chips that move power around a device.

A UK government review found it created two risks to national security - that it could "undermine UK capabilities" in producing compound semiconductors, and could "facilitate access to technological expertise and know-how".

The firm said it was "shocked" and would appeal the decision.

In an urgent question to the government requested by the MP, Ruth Jones said: "Nearly 600 people with just one month to Christmas have had the most unacceptable shock and worry heaped on them by this government."

"I've been informed that Nexperia will now challenge the order and will do everything possible to keep the factory operating and protect its employees in South Wales. They have my support."

Ms Jones asked Business Secretary Grant Shapps to publicise the security assessment that prompted the decision.

Mr Shapps acknowledged it was a "concerning time for 500 or so employees" at Newport Wafer Fab.

But added: "She is not privy to the information that I have had to weigh up in order to come to this national security decision.

"Nor can I am afraid accede to her request to publish that information."

Tonia Antoniazzi, Labour MP for Gower, asked if Mr Shapps was concerned that the plant's employees "had threatened to walk out if the previous owner or investment fund takes over ownership".

Mr Shapps said he heard what she said and was "very conscious of her comments".

"The government's involvement is looking at the national security aspects of this but as a government we want to see good employers everywhere".

Labour Shadow Business Secretary Jonathan Reynolds said: "The chaotic process and the lack of strategy from the government have left workers and businesses facing a great deal of uncertainty," saying it took ministers 16 months to make this decision.

Mr Shapps replied that it was a "rather unfair assessment of what's happened", saying the relevant legislation "only came into existence this January, so to say there has been 16 months during which we have not made any decisions is simply untrue".