THE manager of a Newport semiconductor factory has denied claims that the major technology plant could close, amid claims that its parent company is looking to expand on its Shanghai plant.

In recent weeks, there has been some suggestion that the future of Newport Wafer Fab, in Duffryn, could be at risk, with questions still remaining over last year’s controversial sale to Nexperia, which is backed by the Chinese Government.

Though Nexperia is a Dutch company, it is owned by Wingtech Technology, which is backed by the Chinese Communist Party.

And, last week, it was reported by the Policy Exchange think tank that “there is a strong possibility that when Wingtech’s Shanghai plant reaches full capacity the company might close Newport and shift production to China, thus supporting China’s drive to reduce semiconductor imports”.

But, appearing before a UK Government Business, Energy and Industrial Strategy (BEIS) Committee meeting on Tuesday, July 5, the general manager of Nexperia, Toni Versluijs sought to put distance to these claims.

Addressing claims regarding their future in Newport, Mr Versluijs claimed that the uncertainty came following a misunderstanding of a report written by Sir Geoffrey Owen.

He said: “On the rumours of being shut, I think that has been due to a wrong interpretation of Sir Geoffrey Owen’s report.

“Sir Geoffrey explicitly asked us to take the opportunity today to put a couple of things straight on that. Sir Geoffrey asked me to ‘make it clear that the policy exchange paper was in no way predicting the closure of Newport, but was merely reporting was some opponents of the acquisition have been saying.’”

Mr Versluijs was further pushed on the future of Nexperia’s sites outside of China, being asked by a committee member if there were any plans to close a plant within the next six-to-12 months.

Responding, he said: “We’re not planning to shut any operations. We’ve been in the UK, on the site in Stockport for more than 50 years. We’ve been in Hamburg for more than 50 years. We’ve invested big time. In Manchester we’ve invested big time, and created the jobs. We are here to stay. We want to work in the local ecosystem and enable the local ecosystem to be successful.”

What about the national security assessment?

Nexperia’s appearance before the BEIS committee comes at a time when the company is in the spotlight – due to its takeover of Newport Wafer Fab last year.

The takeover led to national security concerns given the links with the Chinese Government.

Additionally, there are fears that it could lead to China stockpiling a vital piece of infrastructure, which is used in all manner of products, from Playstations to cars.

But, there has been delays in the inquiry into the £63 million takeover, with business secretary Kwasi Kwarteng reportedly asking for an addition 45 days to scrutinise the deal this week.

Responding to the ongoing inquiry, Mr Versluijs said: “Of course, matters of national security need to be investigated in a good and diligent way.

“At the same time, this investigation needs to be done swiftly, and we see that our customers are becoming impatient.

“And also with our employees. Last week, a young lady in Newport stepped into the office of our general manager and said ‘look, I just bought a new house. After this review, will I still have a job?’ I think it is in everybody’s interest to give clarification. If not for Nexperia, but for the employees.”