The fate of Newport Wafer Fab in south Wales has been uncertain for nearly two years since the UK government first expressed concerns over a 2021 takeover by the Chinese-owned Nexperia firm. The national security concerns related to the ownership of semiconductor technology by a company with links to China. This uncertainty has now been compounded by the delay in the approval of a proposed takeover of the UK’s largest semiconductor facility by a US company, putting the future of the Welsh factory at risk.
The American semiconductor company Vishay Intertechnology agreed to buy the factory in November 2023 for $177m, and the company is planning $1.2bn in global investments, some of which could benefit Newport. However, nearly three months later, ministers in Westminster have not given the go-ahead for the takeover, causing frustration and concern.
Labour has criticized the government for its inaction, warning that the delay could lead to further job cuts at the Newport Wafer Fab. Jo Stevens, the shadow secretary of state for Wales, has written to the secretary of state for Wales, David TC Davies, expressing concern over the government’s ‘dragging its feet’ in deciding whether the proposed takeover by Vishay can proceed. The delay has left workers in a damaging limbo, potentially costing further investment and jobs, with some redundancies already occurring during this period of uncertainty.
Oliver Dowden, the deputy prime minister and Cabinet Office secretary, holds the final say over approval of takeovers that fall within national security rules. However, the delay in this case has raised questions about the efficiency of the approval process, especially considering the government’s claims of prompt and business-friendly decision-making.
The situation is critical as it comes at a sensitive time, with the uncertainty surrounding the future of Newport Wafer Fab impacting the livelihoods of hundreds of workers and the potential economic development of the region. The fate of the semiconductor facility remains in the balance as the government’s decision on the proposed takeover continues to be awaited.
