Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Chinese takeover of UK's largest microchip producer faces national security review

Chinese takeover of UK's largest microchip producer faces national security review

A review of the reported £63m deal had been demanded by MPs while a former National Cyber Security Centre chief had warned it posed a greater threat to British interests than Huawei's involvement in the 5G network.

The acquisition of the UK's biggest microchip factory, Newport Wafer Fab, by a Chinese-owned technology company is to undergo a national security assessment.

The business secretary Kwasi Kwarteng announced the move after Nexperia, which is headquartered in the Netherlands but part of Shanghai-based Wingtech, completed the purchase in July last year for a reported £63m.

Mr Kwarteng wrote on his Twitter account: "There will now be a full assessment under the new National Security and Investment Act.

"We welcome overseas investment, but it must not threaten Britain's national security."

The Act gives the government 30 days to investigate and the power to intervene retrospectively.

The factory produces semiconductors - a key component in electronic products from top end smart phones to microwave ovens.

The move follows a decision by Boris Johnson last year to ask national security adviser Sir Stephen Lovegrove to look at the deal amid widespread concern over its potential implications.

Ciaran Martin, the former chief executive of the National Cyber Security Centre, had described the acquisition as posing a greater threat to British interests than Huawei's involvement in the 5G network.

MPs had also called on ministers to intervene.

The Commons Foreign Affairs Committee demanded tougher action to stop strategically important companies being sold overseas and had questioned, just last month, why no review had been announced.


Its chairman, Tom Tugendhat, welcomed the business secretary's decision: "We need to maintain a base to build on to ensure the UK is resilient. This isn't just about security today but independence tomorrow," he wrote.

He had voiced concern that competitors, particularly in China, had a track record of using foreign investments to gain access to important technologies and information.

Nexperia was yet to comment.

It has consistently argued that the company - and its parent firm - are separate from the Chinese state.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×