Government delays national security call on Nexperia’s takeover of Newport Wafer
The government has pushed back its decision to approve or block the £63m takeover of the UK’s biggest computer chip maker by Chinese-owned Nexperia.
Business secretary Kwasi Kwarteng had been expected to publish his decision on the deal for Newport Wafer Fab today, using fresh powers from the National Security and Investment Act which passed in January.
However, the deadline has been extended to midnight on 3 October. Nexperia declined to comment.
Newport Wafer Fab, which makes computer chips for the electric vehicle and defence industries, was bought by Nexperia last year.
The length of the review, launched in May, has drawn critique from those within the industry.
Kwarteng had been expected to publish the conclusion of the review in July, but was granted a 45-day extension as the initial deadline grew closer.
The longer it takes the government to complete the review, the more it risks hurting the UK’s semiconductor industry, CEO of British semiconductor startup Paragraf told City PM in late August.
“Not making the decision is more damaging than making the wrong decision sometimes,” Simon Thomas said.