An effort to prevent a Chinese firm from integrating themselves into the UK’s 5G mobile network was played out in the public recently, but now it seems Welsh Tech Firm, Newport Wafer Fab is set to reignite the question about whether a company with links to the Chinese state should be involved in such an important strategic sector in Wales and the UK.
Dutch semiconductor company Nexperia, a subsidiary of Chinese technology firm Wingtech Technology which is reportedly partly owned by state-controlled organisations in China, is said to be in talks to acquire Newport Wafer Fab for £63 million.
Founded in 1982, Newport Wafer Fab is an important industrial partner in Wales’ emerging compound semiconductor cluster which is set to create thousands of highly skilled jobs over the coming years.
Compound semiconductors are essential components inside many of the devices we all use, such as smartphones, GPS, satellite communications and future electronic devices. They will also be crucial for many of tomorrow’s advanced applications, such as: electric vehicles with anti-collision sensors, wearable technology to monitor health and high-efficiency solar cells to use in space. They work exactly like silicon chips but are up to 100 times faster.
Compound semiconductors are often referred to as the crucial building blocks of electronics which will play an important part in spearheading Wales' Green Tech revolution over the coming years.
The total global semiconductor market is worth around $350bn a year and growing at 10-15% per annum.
Chairman of the Foreign Affairs Select Committee, Tom Tugendhat, last month wrote to Business Secretary Kwasi Kwarteng raising concerns over a Chinese takeover of Newport Wafer Fab 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.”
It has been reported that Nexperia is currently in conversation with the Welsh Government.
