The Government has decided not to block the sale of Newport Wafer Fab, the UK's largest semiconductor plant, to Nexperia, a Dutch subsidiary of the Chinese technology company Wingtech. Semiconductors, also known as microchips, are a critical component of electronic devices, including smartphones. A major controversy broke out after Nexperia attempted to buy the plant last spring.<\/p>\n
Following the uproar, in June, Mr Johnson announced an investigation into the case, launching a review by the Governments national security adviser, Sir Stephen Lovegrove.<\/p>\n
Six months later, Sir Lovegrove has concluded that there is no risk to the UKs security, and thus there is no reason to block the sale, Politico reported.<\/p>\n
Conservative MPs have already raised alarm bells following the decision, arguing that Mr Lovegrove is applying too narrow of a definition of UK security.<\/p>\n
Tom Tugendhat, the chairman of the House of Commons foreign affairs committee, said: Its not clear why we havent used our new powers under the National Security and Investment Act to fully review the takeover of one of our leading compound semiconductor companies.<\/p>\n
He added: This is an area where China is sinking billions to compete.<\/p>\n
The government has no clear strategy to protect whats left of our semiconductor industry.<\/p>\n
The National Security and Investment Act (NSI) came into force on January 4, 2022.<\/p>\n
The post-Brexit act gives the Government powers to scrutinise and intervene in business transactions, such as takeovers, to protect national security.<\/p>\n
It comes after Mr Johnson promised to \"back\" British businesses.<\/p>\n
READ MORE:Why is there a semiconductor shortage?<\/p>\n
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Brexit betrayal! PM slammed as Welsh microchip factory sold to China: 'Not protecting us' - Express<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Government has decided not to block the sale of Newport Wafer Fab, the UK's largest semiconductor plant, to Nexperia, a Dutch subsidiary of the Chinese technology company Wingtech. Semiconductors, also known as microchips, are a critical component of electronic devices, including smartphones. A major controversy broke out after Nexperia attempted to buy the plant last spring Continue reading