Jul 07, 2021 15:44:00

Chinese company 'Nexperia' acquires UK's largest semiconductor maker 'Newport Wafer Fab'

Chinese companies and

Wingtech semiconductor companies, under the umbrella of Nexperia is, the UK's largest semiconductor manufacturer that engaged in a wide chip production, such as automobiles and mobile phones Newport Wafer Fab (NWF) today announced that it has completed the transaction leading to the acquisition of. With the acquisition, Nexperia announced that it will 'become able to meet the demand for semiconductors around the world.'

Nexperia obtains 100% ownership of Newport Wafer Fab, to be renamed Nexperia Newport. | Nexperia
https://www.nexperia.com/about/news-events/press-releases/nexperia-obtains-100-ownership-of-newport-wafer-fab-to-further-boost-production-capacity.html

Nexperia Obtains 100% Ownership of Newport Wafer Fab, to be Renamed to Nexperia Newport
http://www.wingtech.com/en/wtyw_main/4140

Newport Wafer Fab acquired by Chinese-owned Nexperia
https://www.cnbc.com/2021/07/05/nexperia-confirms-acquisition-of-newport-wafer-fab.html

Chinese-owned firm acquires UK's largest semiconductor manufacturer | Technology sector | The Guardian
https://www.theguardian.com/business/2021/jul/05/chinese-owned-firm-acquires-uks-largest-semiconductor-manufacturer

NWF is the UK's largest semiconductor foundry, focusing primarily on manufacturing semiconductor devices for automobiles based on 200mm wafers. The NWF factory in Newport, Wales, manufactures more than 35,000 wafers a month.

Nexperia, a semiconductor manufacturer headquartered in the Netherlands, was originally a standard product division of NXP Semiconductors, but was acquired by Chinese investment companies JAC Capital and Wise Road Capital in 2016 and became independent. It is owned by Wingtech, a Chinese smartphone ODM company.

Originally a customer of NWF's foundry services, Nexperia became NWF's second largest shareholder in 2019 and acquired full ownership of NWF on July 5, 2021. Achim Kempe, Chief Operating Officer of Nexperia, said, 'Nexperia has an ambitious growth plan and owning NWF can cover the growing global demand for semiconductors. NWF is very skilled. We look forward to building the future with our team. '

However, because Nexperia is a subsidiary of a Chinese company, there are criticisms from within the UK that it has 'sold important national assets to foreign countries.' 'The acquisition was not considered under the National Security Investment Act, which was just introduced in April 2021,' said Tom Tugendart, leader of the Chinese research group within the British government and chairman of the foreign affairs committee. I'm very surprised at that. '

'Semiconductor manufacturing is within the scope of investment law. The purpose of investment law is to protect national technology companies from acquisitions of foreign companies when there are significant economic and national security risks,' said Tugentart. 'Despite the British government 's promise to build a global supply chain for semiconductors and other products at the 2021 G7 Summit , the acquisition goes against it and doesn't explain why the government is blinding.' Did. A spokeswoman for the British government responded to an inquiry from the foreign media CNBC, saying, 'I don't think it is appropriate to intervene at this time, but I will continue to monitor the situation carefully.'

It has also been pointed out that NWF has outstanding debt of £ 20 million (about ¥ 3 billion) for Mega Bank HSBC Holdings and £ 18 million (about ¥ 2.7 billion) for the Government of Wales. CNBC estimates the acquisition is £ 63m.