UK's Newport Wafer Fab now under Chinese ownership
- Reference: 1629184510
- News link: https://www.theregister.co.uk/2021/08/17/newport_wafer_fab_sold_to_wingtech/
- Source link:
Companies House has posted a [1]confirmation statement describing the transfer of shares to Nexperia, a Dutch entity controlled by Wingtech.
On Monday Wingtech [2]filed [PDF] with the Shanghai Stock Exchange to announce the deal's completion.
[3]
The deal is controversial – UK PM Boris Johnson has [4]pledged a national security investigation and the UK's Minister of State pledged to review the transaction.
[5]
[6]
With the deal done, the status of that review and investigation are uncertain.
[7]Prime Minister says national security advisor will probe Chinese acquisition of UK's top chip maker
[8]Windows invokes Sgrîn Las Marwolaeth upon Newport
[9]UKRI denies pulling funding from Newport Wafer Fab over Chinese ownership concerns
What is known is that the Newport Wafer Fab can crank out 32,000 wafers a month, working on a 200nm process. That's scarcely cutting-edge, tech given that Taiwan's TSMC is working on a 3nm process.
Of course, not every piece of electronics needs the latest and greatest, and the Newport facility specialises in providing unglamorous but important silicon for automotive, medical, industrial, consumer, telecom, and high power applications.
Wingtech's [10]canned statement about the acquisition paints a rosy picture about the Fab's future, assuring workers and suppliers that jobs will be secure and suggesting further investment will flow.
[11]
But Nexperia customers have told a different story. CNBC last week carried a [12]story that described a US-based customer of the Newport Fab having its contract cancelled due to the takeover deal.
Perhaps the promised review of the deal will consider that allegation. But with the transaction completed, the UK government will have to take radical action to reverse the deal or find ways to mitigate its effects. ®
Get our [13]Tech Resources
[1] https://find-and-update.company-information.service.gov.uk/company/10661389/filing-history
[2] http://static.cninfo.com.cn/finalpage/2021-08-16/1210750161.PDF
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YRuI24S4iJ2ZVLZAlfC1XwAAANc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2021/07/07/uk_newport_wafer_fab_probe/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YRuI24S4iJ2ZVLZAlfC1XwAAANc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YRuI24S4iJ2ZVLZAlfC1XwAAANc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2021/07/07/uk_newport_wafer_fab_probe/
[8] https://www.theregister.com/2020/05/19/bork/
[9] https://www.theregister.com/2021/07/23/ukri_denies_newport_wafer_fab_fund_issue/
[10] http://www.wingtech.com/en/wtyw_main/4140
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YRuI24S4iJ2ZVLZAlfC1XwAAANc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.cnbc.com/2021/08/13/nexperia-takeover-of-newport-wafer-hurt-us-firm-ideal-semiconductor.html
[13] https://whitepapers.theregister.com/
Re: A fortune for pennies
"The UK has had its post-colonial guilt trip of being super nice to anyone 'foreign'"
God, yes, ask any Iraqi and Yemeni on the street what they think of the UK, and they'll say "it's unbearable, they've just so super nice to us all the time, it's a constant stream of cream cakes and cuddly toys falling from the sky, when will they stop being so nice and start being a bit more cynical?"
Re: A fortune for pennies
Their 180nm process node "technology" is more than 20 years out of date, and China can already do much better stuff that this.
Newport Wafer Fab's output is mostly used in power management chips for cars where I guess it is perfect adequate for the task in hand, but it is certainly not modern or cutting edge.
Re: A fortune for pennies
It's out of date for pure digital logic, but that's not what they are making.
People use 180nm for a reason.
Re: A fortune for pennies
Not every chip must be 5nm. The 180nm process is perfect for many things.
Re: A fortune for pennies
"but it is certainly not modern or cutting edge."
...nor in any way "strategic".
1) Companies House just makes available whatever documents the company uploads. It doesn't actively review, approve or (in practice) audit filings by companies.
2) the Government can scrutinise and review whatever it wants but unless they have the power to do something about it, it's irrelevant. Johnson said “Thanks to ... the National Security and Investment Bill, we are able to take action", but
- it's now an Act, not a Bill, because it has been passed by Parliament
- the relevant powers under the act don't come into force until 01 Jan 2022
https://www.legislation.gov.uk/ukpga/2021/25/contents/enacted
Usual vacuous bluster from BloJo
Utility companies, ARM, transport operators, the list is endless. This case really beggars belief though. This should have been blocked on national security grounds.
Re: Usual vacuous bluster from BloJo
Why would they care? If Pooh hits the fan, they'll just move somewhere nice and laugh...
Huge mistake
It's not trivial to set up a new fab, often it is prohibitively expensive or next to impossible.
I think the biggest problem is why someone would like to sell such fab to Chinese (or anyone else for that matter).
There is a chip shortage and such companies are making a killing. If it does not make sense to do that business here (otherwise why would you sell it) then there is something seriously wrong with the economy.
Re: Huge mistake
>I think the biggest problem is why someone would like to sell such fab to Chinese
According to its history - which isn't particularly clear, focusing more on the site than the company, it was owned by a Hong Kong based company...
I think we in the UK are reaping the rewards of decades old Conservative party policy that encouraged foreign entities to invest in the UK, ie. buy up UK businesses.
A fortune for pennies
Why we give our IPR and strategic capabilities to foreign actors who are to all intents and purposes rogue enemy states just belies belief. The UK has had its post-colonial guilt trip of being super nice to anyone 'foreign', it should now adopt a more realistic attitude and use a degree of measured cynicism in our relationships.