Security News > 2022 > December > Nexperia calls in the lawyers to save Welsh chip fab deal

Blocked by the British government from acquiring Newport Wafer Fab - Britain's largest chip factory - Nexperia has solicited the help of US law firm Akin Gump in the hopes of overturning the ban.

Nexperia is a Netherlands-based company that was acquired in 2018 by China-based Wingtech Technology.

Nexperia's acquisition of the Newport Wafer Fab in 2021 for £63 million drew the attention of many within the British government - including then-Prime Minister Boris Johnson - who expressed national security concerns and called for a probe.

A later assessment under the National Security and Investment Act concluded with Shapps ordering Nexperia to sell at least 86 percent of its stake in the Newport facility in Wales.

The decision drew condemnation from Nexperia execs who expressed frustration that the deal was killed after passing "Two previous security reviews," and pledged to challenge the order and "Do everything possible to keep the factory and protect its employees in South Wales."

As far as mergers and acquisitions are concerned, Nexperia's Newport deal isn't the first to be scuttled by concerns over Chinese government influence.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/12/30/newport_nexperia_china/