Newport Wafer Fab set for 'anxious' weeks before takeover

The chip plant in Duffryn, Newport, was the subject of a divestment order - meaning it must be sold - last year because of security concerns over Nexperia’s Chinese ownership.

Last month, American manufacturers Vishay Intertechnology announced an agreement to acquire the facility, which Nexperia bosses hailed as the site's “most viable” future.

After meeting employees at the Senedd, South Wales East MSs Delyth Jewell and Peredur Owen Griffiths wrote to deputy prime minister Oliver Dowden on November 29 to ask that the vetting process take place with the “utmost urgency”.

Senedd members met Wafer Fab representatives last month (Image: Peredur Owen Griffiths MS)

Industry minister Nusrat Ghani responded two weeks later, on November 15, reiterating the government’s commitment to a successful takeover.

“I appreciate that this has been a concerning period for Newport Wafer Fab’s staff and their job security,” the minister said. “The government recognises the importance of the Newport site to the local and UK economy and the world-leading capabilities present within the South Wales cluster.”

Ms Ghani said she could not comment on whether the acquisition is subject to a review under the National Security and Investment Act.

READ MORE: Nexperia country manager to step down

“We know that sometimes national security risks do arise as a result of investment into the UK, therefore it is right that we have a regime that enables us to manage these risks and ensure that the UK’s national security is protected.

“As outlined in our most recent annual report, where we do have to screen acquisitions, we will do this as quickly as we can and always within our statutory timeframes.”

The Argus understands that the change in ownership would likely be formalised in January 2024.

'Anxious couple of weeks'

Responding to the minister's letter, Mr Owen Griffiths said it was “disappointing” the government could not approve the acquisition in time for Christmas.

“Instead of enjoying the festive period, safe in the knowledge that their jobs are safe, workers at Newport Wafer Fab will have an anxious couple of weeks while they wait for the acquisition to be approved.

“The sooner they approve this deal, the better.”

Ms Jewell said: “We are fully behind the workers’ bid to secure the future of this strategic site. The Newport Wafer Fab has enormous economic significance – not just for Newport but for the whole of Wales.

“With an experienced and dedicated workforce, it is easy to see why the acquisition is so attractive to Vishay.

“It is vitally important that the UK Government does not become an obstacle in this acquisition happening.”