Asian Tech Press (May 26) -- UK has launched a full national security assessment of the acquisition of Newport Wafer Fab by a subsidiary of Chinese company.

British Business and Energy Secretary Kwasi Kwarteng said on Wednesday that the UK has requested a full national security assessment on the acquisition of Newport Wafer Fab by Nexperia, a subsidiary of Chinese firm Wingtech Technology Co.,Ltd.

"We welcome overseas investment, but it must not threaten Britain's national security," Kwarteng tweeted.

Newport Wafer Fab is the largest microchip manufacturing facility in the UK, established in 1982 and originally named Inmos.

In July 2021, Wingtech announced that its wholly owned subsidiary Nexperia had signed an acquisition agreement with Neptune 6 Ltd, the parent company of Newport Wafer Fab, and its shareholders.

Upon completion of the transaction, Nexperia will hold 100% equity interest in Neptune and 100% interest in Newport Wafer Fab through Neptune.

The acquisition is reportedly at a value of around £63 million.

In April this year, the UK government approved the deal for Nexperia to acquire Newport Wafer Fab.

Founded in 2006, Wingtech's businesses include three major segments, the integrated device manufacturer (IDMs), optical modules, and communication product integration.