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Security review into Newport Wafer Fab sale does not appear to have begun – MPs

05 Apr 2022 2 minute read
Newport Wafer Fab picture by Robin Drayton (CC BY-SA 2.0).

MPs have questioned why a security review into the takeover of a hi-tech Welsh company to a Chinese-owned firm has allegedly “not begun”.

Prime Minister Boris Johnson last year asked national security adviser Sir Stephen Lovegrove to examine the purchase of Newport Wafer Fab by Nexperia for a reported £63 million.

The Welsh company is one of the UK’s largest manufacturers of semiconductors, which are key components in communications devices and technology.

The Commons Foreign Affairs Committee said the sale of Wafer Fab to a “company with links to the Chinese Communist Party” had resulted in one of the UK’s “prized assets” going to a “strategic competitor”, and could potentially compromise national security.

In a report – Sovereignty For Sale: Follow-up To The Acquisition of Newport Wafer Fab – published on Tuesday, the committee’s MPs questioned why the UK Government had not used powers in the National Security and Investment Act to intervene.

The Act, which came into force in January, affords ministers the right to step-in on business matters “where there is a risk to national security”.

Tom Tugendhat, Tory chairman of the committee, said: “The Prime Minister’s assurances that work is underway are welcome.

“However, so few details have been provided to the committee, that we are left with the unfortunate conclusion that no review has taken place.

“Today, the committee is calling on the Government to clarify the reasons why the Prime Minister requested a review in Newport Wafer Fab and why this review has not begun.

“The Government has the tools, it just needs to use them.”

Swansea West MP Geraint Davies said last week that the UK Government should have blocked the sale as China were “defending Russia against war sanctions and weaponising trade against democracies”.

A Government spokesman said: “The Government is considering the case and no decisions have been made.”

China now controls more than nine per cent of the global semiconductor market, closing in on the EU which controls 10%.


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Grayham Jones
5 months ago

It’s time for a new wales 🏴󠁧󠁢󠁷󠁬󠁳󠁿 all business in wales must be run by welsh people only not incomers so all the money stays in wales 🏴󠁧󠁢󠁷󠁬󠁳󠁿 it’s time for a new wales 🏴󠁧󠁢󠁷󠁬󠁳󠁿 vote Plaid Cymru 🏴󠁧󠁢󠁷󠁬󠁳󠁿

Mab Meirion
Mab Meirion
5 months ago

There must be a complete reappraisal of all vetting done by government and councils in Wales before another contract is signed…Due diligence and Welsh governance are complete strangers to one another…

Gareth
Gareth
5 months ago
Reply to  Mab Meirion

What has the gov of Cymru got to do with this. The article refers to the UK Gov and Boris Johnson and his national security adviser Sir Stephen Lovegrove, but dont let things like facts get in the way of slating our Gov.

Mab Meirion
Mab Meirion
5 months ago
Reply to  Gareth

You have just proved my point…

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