£140 million Newport Wafer Fab deal completed

US electronics giant Vishay has confirmed that it has completed its $177m (£140m) takeover of Newport Wafer Fab, the UK’s largest manufacturer or semiconductors.

The deal ends years of uncertainty following the purchase of the business by Nexperia in July 2021.

The Dutch-based technology company, which is a subsidiary of Shanghai-listed Wingtech, was forced to sell its 86% stake in the plant because of UK Government Ministers’ concerns about its links to China.

Approval

Vishay’s deal, which was originally tabled late last year, has been completed following UK Government approval.

A consent order approving the purchase has been issued by Deputy Prime Minister Oliver Dowden.

Under the terms of the agreement, the UK government must be informed if Vishay plans to give third parties access to the factory via sale, transfer, or lease agreements.

Vishay says it plans to position the facility as a manufacturing excellence centre focusing on Net Zero Transformation of decarbonization and electrification and collaborate with local universities and others in the UK to enhance its research and development efforts on power compound semiconductors.

Employees

Marc Zandman, Executive Chairman of the Vishay Board, said:” “We welcome the highly skilled and dedicated employees at the Newport wafer fab into the Vishay family.

“Vishay is committed to investing in Newport to grow capacity, and to accelerate our SiC and GaN production and technology development.  We look forward to the contributions of Newport’s employees to our shared success.”

To complete the deal Vishay acquired a 100% interest in the legal entity Neptune 6 Limited, and its wholly owned operating subsidiary, Nexperia Newport Limited, which owns and operates the Newport facility. Neptune 6 Limited is expected to be renamed “Vishay UK Holdings Limited” and Nexperia Newport Limited is expected to be renamed “Vishay Newport Limited”.