One of Wales' leading tech firms expected to come under Chinese ownership
One of Wales’ leading technology firms Newport Wafer Fab (NWF) is expected to come under Chinese ownership this week in a multi-million pound deal.
NWF, a semiconductor firm based in Newport and the UK’s
biggest manufacturer of chips, is close to being acquired by Dutch-based firm
Nexperia, which is wholly-owned by Chinese venture Wingtech Technology in a
deal expected to be in the region of £67m. Wingtech manufactures smartphone
parts for Chinese companies such as Huawei and Xiaomi.
Following a contract supply dispute Nexperia has had
representation on NWF’s board since the spring. NWF is seen as a key industrial
partner in South Wales’ emerging compound seminconducter cluster which aims to
create 2,000 plus high skilled jobs in an ecosystem ranging from early stage
research and development through to commercialisation.
According to documentations lodged with Companies House,
Nexperia now has charges over NWF for all of its current and future
intellectual property assets as well as its land and property assets.
A Nexperia spokesperson said: “We are in constructive
conversations with NWF and Welsh Government about the future of NWF. Until we
have reached a conclusion we cannot further comment.
The Welsh Government have been asked whether they could be
part of a new ownership structure for NWF by taking equity alongside Nexperia.
Last year the Westminster government said it was removing
Chinese firm Huawei from the UK’s 5G network by 2027.
Tory MP and chairman of the Foreign Affairs Select
Committee, Tom Tugendhat, last month wrote to Business Secretary Kwasi Kwarteng
raising concerns over a Chinese takeover of NWF on national strategic asset and
security grounds..
He wrote: “I must stress again that having the UK’s leading
200mm silicon and semiconductor technology development and processing facility
being taken over by a Chinese entity – in my view – represents a significant
economic and national security concern.”
Last year the Westminster government said it was removing
Chinese firm Huawei from the UK’s 5G network by 2027.
A spokesman for the UK Government said: “We are aware of the
expected takeover by Nexperia of Newport Wafer Fab. While we do not consider it
appropriate to intervene at this time, we will continue to monitor the
situation closely and will not hesitate to use our powers under the Enterprise
Act should the situation change.
“We remain committed to the semiconductor sector, and the
vital role it plays in the UK’s economy.”
NWF, which employs more than 400, was taken over by Neptune
6 in 2017 from German firm Infineon.
The buy-in management buy-out deal was supported with £13m
financial support by the Welsh Government and a funding line from HSBC.
Directors of Neptune Six include the outgoing chief
executive of Cardiff headquartered compound semiconducter firm IQE Drew Nelson.
Mr Nelson, who is the biggest shareholder in NWF, has been a
strong advocate for the UK re-establising a sovereign capacity in
semiconductors.
There is speculation that as part of any deal Mr Nelson will
be allowed to spinout a new compound seminconducter venture which could also
use the NWF name.
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