Editing by Kate Yuan with WM Zhang

Nexperia, the Chinese-listed Wingtech company subsidiary that acquired the UK’s largest chip manufacturer NWF last month, explained that the deal’s objective is to increase NWF’s production volume, and Nexperia remains committed to NWF’s  R&D projects in compound semiconductor and other technologies. 

Toni Versluijs, General Manager of MOS discrete business and the UK Country Manager for Nexperia, spoke with eeNews Europe.  "Nexperia Newport isn't a foundry. Nexperia bought the factory to be a volume producer," he said, “The acquisition of NWF is to enlarge capacity instead of the so-called technical know-how. We are eager to work with the people in NWF for its takeoff.”

The interview came amid lingering concern over the acquisition by a Chinese-owned company. The acquisition of NWF (Newport Wafer Fab) by Nexperia ended this month, and Wingtech indirectly holds 100% equity of NWF, according to the announcement issued by Wingtech on August 15. 

Nexperia used to be a customer and minor shareholder of Newport Wafer Fab. In March 2021, Nexperia appointed two nominees to the board of directors of Newport Wafer Fab Ltd. According to the eeNews Europe report.

"We had an agreement made back in 2019 that Nexperia would load Newport Wafer Fab [with orders for chips] but if certain conditions were not fulfilled, we would have the right to appoint directors. Those conditions arose,” Toni Versluijs said, “The major one was that it looked as if NWF would not deliver the capacity we had agreed to." The second was financial. It looks like NWF might not be able to exist much longer." The acquisition became a solution to these issues.

NWF reportedly has been manufacturing for more than 20 R&D projects with different academic and commercial partners, including materials such as silicon photonics, silicon-carbide, GaN-on-Si for RF, for power, and for LEDs and GaN-on-SiC.

After the deal, Versluijs said Nexperia would continue the projects. Although Nexperia wanted to use the factory for volume production of power MOSFETs, it would honor all the current R&D contracts. They also agreed that the seller could start a new wafer fab for compound semiconductors and photonics to undertake more contracts. 

According to JW Insights’ reports, Shanghai-headquartered Wingtech Technology is listed on Shanghai Stock Exchange under stock code 600745. The company started in 1993 as a private electronics company. It has made big money since 2006 when it expanded into the mobile phone design house (IDH) business. Over the last 15 years, the company grew dramatically, listed on Shanghai Stock Exchange in 2016, and acquired NXP's Nexperia in 2019. Its businesses extended to semiconductor IDM, optical modules, and telecommunication equipment. It ranked the 226^th in Fortune China’s China 500 2021 listing released in August.