British government blocks Chinese firm

China’s takeover of Britain’s biggest chip factory blocked on national security grounds The British government has blocked a planned takeover of the country’s biggest microchip factory by a Chinese company over concerns it could undermine national security. On Wednesday, Business, Energy and Industrial Strategy Secretary Grant Shapps ordered Dutch chipmaker Nexperia to sell the majority stake it bought in Welsh semiconductor firm Newport Wafer Fab for 63 million pounds ($75 million). Nexperia is based in the Netherlands but is owned by Wingtech. Nexperia, a partly Chinese state-backed company listed in Shanghai, completed its acquisition of Newport Wafer Fab in 2021 and the firm has since changed its name to Nexperia Newport Limited (NNL). “The agreement requires Nexperia BV to sell at least 86% of NNL within a specified time period and following a specified process,” the UK’s Department for Business, Energy and Industrial Strategy said in a statement. Nexperia initially owned 14% of Newport Wafer Fab, but increased its stake to 100% in July 2021. “We welcome foreign trade and investment that supports growth and jobs. But we will act decisively when we identify a risk to national security,” Shapps tweeted on Wednesday. Nexperia’s UK country manager Toni Versluijs said the decision was wrong and the company planned to appeal. “We are truly shocked. The decision is wrong and we will appeal to overturn this liquidation order to protect over 500 jobs in Newport,” Versluijs said on Wednesday.