Government approve Newport Wafer Fab sale to Vishay

American manufacturing company Vishay Intertechnology agreed a takeover in November worth more than £140 million.

The 28-acre site in Duffryn, which mainly supplies the automotive markets, suffered a long spell of uncertainty after the government forced owners Nexperia, who had Chinese links, to sell over national security concerns.

Nexperia president Joel Smejkal said the company’s goal was to “safeguard the positions of the highly skilled and dedicated employees”.

READ MORE: Security decision deadline edges closer for Newport's semiconductor facility

The government has approved the change in ownership today, March 1.

The Argus understands the review was concluded within statutory timeframes.

The government forced Nexperia to sell the Newport site over 'security concerns' with its Chinese links

Commenting, shadow Welsh secretary Jo Stevens MP said: “This is long-overdue good news for workers in Newport who have campaigned hard for UK ministers to end their prevarication.

“The government claimed they could process decisions like this in a ‘business friendly’ 30 days, but ministers dragged their feet for months, risking livelihoods and valuable investment in a strategically significant industry."

A spokesperson for the Cabinet Office said: "Following a detailed national security assessment, the Deputy Prime Minister, in his role as Secretary of State in the Cabinet Office, has allowed the proposed acquisition of Nexperia Newport Ltd, by Vishay Intertechnology Inc to proceed.

"This is subject to one necessary and proportionate condition the Deputy Prime Minister has put in place to mitigate potential national security risks using the National Security and Investment Act (2021). The powers enable the UK to continue championing open investment, whilst protecting national security."

'Patience'

Natasha Asghar, Conservative MS for South Wales East, said the announcement "signals the start of a very exciting for Newport" as Vishay plans to expand the workforce and invest in the site.

Economy minister Vaughan Gething said Vishay had "set out their intention to invest in the site and work with the existing semiconductor cluster in South Wales" over 18 months of discussions.

Ruth Jones, Labour MP for Newport West, said she was "relieved" the decision had been made.

"The amazing workers at Newport Wafer Fab have been left in limbo for many months now due to the dither and delay by the Cabinet Office. I welcome this decision and I am really looking forward to welcoming Vishay as they take over the site and develop it," she said.

Ruth Jones, MP for Newport West, hopes staff are 'rewarded' for their patience

"Newport Wafer Fab has the potential to become the key wafer manufacturing site in the UK. I thank the staff at the site for their patience and hope they are rewarded appropriately."

Peredur Owen Griffiths, Plaid Cymru MS for South Wales East, hailed the approval as "fantastic news for all concerned".

“This is not just a boost for the workers that currently work on site but it is also a boost for those who will come to work on the site in the months and years to come now that the future of Newport Wafer Fab is secured and the promised investment can begin," he said.

"The one sour note in all of this is the time it has taken to approve the deal. Given Vishay is American-owned, this should have been a straightforward and rapid acquisition process.

“The powers-that-be in Westminster could have put the Newport Wafer Fab staff out of their misery and given this deal the green light before Christmas instead of dragging this episode out."