International Electronic Business News learned from foreign media on the 6th that the British government intends to restrict or prevent Nexperia, a subsidiary of China's Wingtech, from acquiring the UK's largest wafer fab, Newport Wafer Fab (NWF) within a few weeks.
According to "Bloomberg" citing sources, the British government intends to restrict or block the acquisition of Newport Wafer Fab (NWF), the UK's largest fab, by Nexperia, a subsidiary of China's Wingtech Technology, within a few weeks.
Nexperia, a Dutch chip company under Wingtech Technology, announced the acquisition for 63 million pounds (currently about 530 million yuan) through formal business processes in mid-July last year (official announcement! Wingtech and NWF reached an acquisition agreement) NWF, the UK's largest chip maker.
According to public information, NWF is the only remaining and largest advanced semiconductor factory in the UK. The fab was first established in 1982 and was originally named INMOS. The current production capacity exceeds 35,000 wafers per month (200mm wafers), and the manufacturing method covers thinning MOSFETs and trench IGBTs, etc., for the manufacture of CMOS, analog and compound semiconductor components.
It is reported that the UK has become more cautious about the review of sensitive technologies such as semiconductors, prompting the British government to launch a retrospective investigation into the acquisition in May this year under the new National Security and Investment Law, which was implemented at the beginning of the year. Business Secretary Kwasi Kwarteng expanded the investigation in July and is expected to rule on the takeover risk in early September.
The Commerce Department on Friday extended an additional review period, with Business Secretary Kwasi Kwarteng saying the UK is considering whether to make a final ruling under the National Security and Investment Act, and what terms should be included.According to "Bloomberg" citing sources, the British government intends to restrict or block the acquisition of Newport Wafer Fab (NWF), the UK's largest fab, by Nexperia, a subsidiary of China's Wingtech Technology, within a few weeks.
Nexperia, a Dutch chip company under Wingtech Technology, announced the acquisition for 63 million pounds (currently about 530 million yuan) through formal business processes in mid-July last year (official announcement! Wingtech and NWF reached an acquisition agreement) NWF, the UK's largest chip maker.
According to public information, NWF is the only remaining and largest advanced semiconductor factory in the UK. The fab was first established in 1982 and was originally named INMOS. The current production capacity exceeds 35,000 wafers per month (200mm wafers), and the manufacturing method covers thinning MOSFETs and trench IGBTs, etc., for the manufacture of CMOS, analog and compound semiconductor components.
It is reported that the UK has become more cautious about the review of sensitive technologies such as semiconductors, prompting the British government to launch a retrospective investigation into the acquisition in May this year under the new National Security and Investment Law, which was implemented at the beginning of the year. Business Secretary Kwasi Kwarteng expanded the investigation in July and is expected to rule on the takeover risk in early September.
The Commerce Department on Friday extended an additional review period, with Business Secretary Kwasi Kwarteng saying the UK is considering whether to make a final ruling under the National Security and Investment Act, and what terms should be included.
UK Business Secretary Kwasi Kwarteng Twitter
On May 25, Kwasi Kwarteng tweeted that the British side will review the deal under the new National Security and Investment Law introduced earlier this year. We welcome overseas investment, but must not threaten UK national security.
According to the information on the UK government website, as the biggest change to the UK's national security system in 20 years, the National Security and Investment Act will come into effect on January 4, 2022, and the UK government will be able to scrutinize and interfere with anyone (including businesses and investments) from now on. takeovers that may undermine UK national security. Hong Kong's "South China Morning Post" said that the move is similar to the review of the Committee on Foreign Investment in the United States (CFIUS), and the British government has 30 working days for evaluation, which can be extended to 45 days.
The British government is expected to make a final decision within weeks, with the extended review suggesting the deal could be rejected outright, multiple sources said. Judging from the market conditions and the attitude of the British government, the chances of a successful merger are very low. Newport Wafer Fab may be resold to U.S. companies if it cannot be sold to Nexperia.
Britain is due to announce its new prime minister next week, when the new prime minister will appoint a new business secretary to make a final decision on the takeover.