Chinese-owned Nexperia says it was shocked by the UK government’s order to divest at least 86% of its already-acquired British fab NWF and will appeal to overturn it
Chinese article by 魏健
English Editor WM Zhang
11-18 22:50

By Gabby Chen

Nexperia (安世半导体), the Netherlands-based subsidiary of the Chinese electronics company Wingtech Technology, expresses shock at the UK government's order to divest at least 86% of its already-acquired British biggest microchip factory, Newport Wafer Fab (NWF), following a British national security assessment. It said it will appeal against the order, JW Insights reported on November 17.

Wingtech Technology (闻泰科技) issued a statement with shock at the British government's order.

Toni Versluijs, Nexperia’s UK Country Manager, said, “We are genuinely shocked. The decision is wrong, and we will appeal to overturn this divestment order to protect the over 500 jobs at Newport. His remarks appear on the company’s website.

The UK government’s latest decision came after Nexperia’s acquisition was cleared by two previous security reviews. Nexperia does not accept the national security concerns raised. The far-reaching remedies which Nexperia offered to fully address the government’s concerns have been entirely ignored, announced the company.

Toni Versluijs said, “This decision sends a clear signal that the UK is closed for business. The UK is not Levelling Up but Levelling Down communities like South Wales.”

“The decision is wrong – in many aspects. It is legally wrong – being disproportionate given the remedies Nexperia has proposed. It is wrong for the employees of NWF – creating further uncertainty. It is wrong for the UK semiconductor industry – taking out a strong player. It is wrong for the UK economy – undermining its semiconductor industry as we brought new production to Newport. It is wrong for the UK taxpayer – who could now be faced with a bill of over £100 million ($118.84 million) for the fallout from this decision,” he added.

“We will appeal this wholly incorrect decision. We are hugely disappointed by this extraordinary U-turn, and the greater uncertainty that it creates for our employees and their families in Wales whilst also not recognising the commitment of our 1,000 employees in Manchester,” said Versluijs.

According to the assessment, the NWF’s acquisition amount, revenue, and net profit accounted for less than 1% of the corresponding indicators of Nexperia, which had a relatively small impact on its production and operation, the company noted.

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