Nexperia Newport national security sale 'could take years'

The sale of Nexperia's site in Newport could take "years" according to Wales' first minister.

The Chinese-owned company was ordered by UK ministers to sell its 86% stake in the Newport site, due to national security concerns.

Mark Drakeford said it would be for the UK government to provide any financial support to help it move to new ownership.

He made his comments at a meeting of the Commons Welsh affairs committee.

Earlier in November the Westminster government ruled that Nexperia's takeover of the semiconductor plant - the largest in the UK - risked undermining UK capabilities in producing compound semiconductors.

It also said the plant's location as part of a semiconductor cluster on the Duffryn industrial estate, could "facilitate access to technological expertise and know-how".

The local Labour MP, Newport West's Ruth Jones, is backing moves by Nexperia to appeal.

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Mr Drakeford told the committee the sale of the UK's largest microchip plant "is not going to happen quickly" and that any financial support needed to help it move to new ownership should come from the UK government.

Answering a question about financial aid for the plant from Labour's Ruth Jones MP, Mr Drakeford said: "We don't have national security responsibilities, nor do we have any insight into the reasons why the UK government came to the conclusion that it did.

"What I think has become much clearer in the aftermath of the decision is that the sale of the company is not going to happen quickly.

"We're talking years rather than months here".

He added: "The investment that will be needed to move Nexperia - or the successor to Nexperia - from a fab manufacturing chips for Nexperia's customers to one making other semi-conductor products for a new owner is also likely to take many hundreds of millions of pounds. "

"This is a very. very consequential decision that has been made and it will be BEIS that will have to now have to help deal with the consequences of that decision."

"The issue of Nexperia and how its transition to new ownership is to be supported I think is a matter for the UK government given that they made the decision in the first place."