News

£300m plan to prise Newport chip factory away from Chinese firm

12 Aug 2021 2 minutes Read
Newport Wafer Fab. Photo by Robin Drayton, licensed under CC BY-SA 2.0

A technology executive has vowed to spend up to £300m to acquire a Newport chip factory amid a battle to prise it out of Chinese control.

Ron Black, who ran Imagination Technologies, said a consortium of six companies is ready to step in with a bid for the factory, Newport Wafer Fab, which is Britain’s biggest microchip plant.

He says they are ready to swoop if the UK Government intervenes to block its acquisition by Shanghai-owned company Nexperia.

Though he declined to directly call for ministers to block Nexperia buying the factory, he has said that all technology deals should be strongly considered on national security grounds.

According to Black, the investors’ plans would help transform the south of Wales into a hub for advanced chipmaking with compound semiconductors.

Black told The Telegraph: “What we’re looking to do is to provide an alternative to the current deal if either Nexperia or the Government conclude that an alternative is necessary.”

Last month, Nexperia, which is owned by the Chinese tech business Wingtech, acquired Newport Wafer Fab for £63m after the plant fell into financial difficulty.

UK Prime Minister Boris Johnson has ordered a national security review of the deal after MPs accused the UK Government was turning a blind eye to the takeover.

Black said he was working with three electronics companies and three financial investors, which are based in the UK, Europe and the US on a proposal to takeover the plant.

‘Firepower’ 

He says the consortium has substantial financial firepower and plans to invest heavily in the plant.

The acquisition could include a bid that would more than return Nexperia’s investment in the company, potentially up to £100m, as well as include a further £200m of spending to expand the plant’s capacity.

Black added that he’s been in touch with “people around economic development in Wales” and that he would welcome government investment as part of any deal.

A review into the takeover is expected to conclude in coming weeks. However, it is believe that the future of the deal is likely to remain uncertain until January. This is when when stronger national security laws are expected to come into force which will allow ministers to block foreign takeovers.

Subscribe
Notify of
guest
4 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Shan Morgain
2 months ago

Very important that we keep such a sensitive industry in our own hands. A bit of background here https://www.thisismoney.co.uk/money/markets/article-8209019/Imagination-Technologies-boss-steps-failed-Chinese-coup.html Seems this is an ongoing tension with the Chinese and Ron Black is a leading warrior on this side. Dr Black has over 30 years industry experience. Most recently President and CEO at Imagination Technologies and previously CEO at Rambus, MobiWire, UPEK, and Wavecom. He holds a BS and MS in Engineering and a PhD in Materials science from Cornell University. A consistent thread of his career has been processors including PowerPC at IBM, network processors at Freescale, security processors at… Read more »

Egon Krenz
Egon Krenz
2 months ago

What is the problem with Chinese firms owning it?

David Harking
David Harking
2 months ago
Reply to  Egon Krenz

You need to watch the documentary ‘American factory’ on Netflix, then you’ll see why it is a serious problem.

Egon Krenz
Egon Krenz
2 months ago
Reply to  David Harking

And I can come on here and find another country to add to my cannon of bigoted xenophobia?

Our Supporters

All information provided to Nation.Cymru will be handled sensitively and within the boundaries of the Data Protection Act 2018.