Newport Wafer Fab could be sold to US consortium – report
- Reference: 1653930914
- News link: https://www.theregister.co.uk/2022/05/30/newport_wafer_fab_report/
- Source link:
[1]
Transporter Bridge in Newport near the fab
This is according to reports at the weekend in the [2]Telegraph , which also claimed the agreement could be funded in part by a grant from the UK government itself.
Newport Wafer Fab is one of the few facilities left in the UK that still manufactures semiconductors, but it was sold last year in a deal worth £63 million to Dutch company Nexperia, which is now a subsidiary of Chinese outfit Wingtech Technology.
Last week, the government used its new powers under the National Security and Investment Act 2021 to [3]call in the acquisition by Nexperia of Newport Wafer Fab for review under a full national security assessment.
The government is said to be considering an alternative bid from an unnamed US-based consortium that is interested in buying Newport Wafer Fab instead, even though the [4]Nexperia sale closed last year .
[5]
Furthermore, the consortium is said to be looking at partly financing its bid out of the UK government's own Automotive Transformation Fund, set up to invest in projects to drive the development of a local supply chain for electric vehicles, on the grounds that the Newport Wafer Fab could be used to manufacture chips for use in electric vehicle charging points.
[6]UK opens national security probe into 2021 sale of local wafer fab to Chinese company
[7]UK government reviewing stake in BT owned by French tycoon Patrick Drahi
[8]UK's Newport Wafer Fab now under Chinese ownership
[9]Prime Minister says national security advisor will probe Chinese acquisition of UK's top chip maker
Such a move could prove to be almost as controversial as the sale to Nexperia, as it would mean that UK taxpayers are effectively financially supporting the private ownership transaction.
The [10]Automotive Transformation Fund is intended for UK registered businesses to apply for a share of a pot worth up to £1 billion.
[11]
We contacted the Department for Business, Energy and Industrial Strategy (BEIS), but it would only reiterate last week's announcement that Business Secretary Kwasi Kwarteng had decided to call in the acquisition by Nexperia of Newport Wafer Fab for a security assessment.
A BEIS spokesperson told us that it could not comment on any potential commercial transactions regarding Newport Wafer Fab, as the security assessment is still ongoing.
[12]
Meanwhile IDC's research director for European Enterprise Infrastructure, Andrew Buss, said that it was doubtful whether the Newport Wafer Fab plant could be realistically repurposed for making new types of semiconductor products without significant investment from whoever ends up owning it.
"It's a well established plant, but it's hardly at the cutting edge as far as manufacturing processes go," Buss told us. "And if you have to update the plant to upgrade to more modern manufacturing processes, would a facility built in 1982 really be the best place for that?" ®
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[1] https://regmedia.co.uk/2022/05/30/shutterstock_623376095.jpg
[2] https://www.telegraph.co.uk/business/2022/05/28/bailout-planned-british-microchip-giant-china-deal-comes-scrutiny/
[3] https://www.theregister.com/2022/05/26/security_probe_nexperia_sale/
[4] https://www.theregister.com/2021/08/17/newport_wafer_fab_sold_to_wingtech/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YpU@gI-gZffeOXjSdu6qqQAAAA4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[6] https://www.theregister.com/2022/05/26/security_probe_nexperia_sale/
[7] https://www.theregister.com/2022/05/26/bt_national_security_altice/
[8] https://www.theregister.com/2021/08/17/newport_wafer_fab_sold_to_wingtech/
[9] https://www.theregister.com/2021/07/07/uk_newport_wafer_fab_probe/
[10] https://apply-for-innovation-funding.service.gov.uk/competition/1128/overview
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YpU@gI-gZffeOXjSdu6qqQAAAA4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YpU@gI-gZffeOXjSdu6qqQAAAA4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/
Re: There you are
Exactly. The Telegraph is reporting the US is pressuring the UK to not block the sale of another tech company to an American private equity company. If we don't do what they say, there is the threat to block UK access to US defence and security:
https://www.pressreader.com/uk/the-daily-telegraph/20220528/281552294483830
Re: There you are
The UK is as much an independent country as South Vietnam was during the Vietnam war. British politicians only job is to say sucky, fucky, five pounda.
Re: There you are
Don't you love the doublespeak:
“Congress has already taken action to ease some of the restrictions on British defence companies operating in the US. But instead of adopting a similar approach, it seems the British government is determined to impose unnecessary obstacles that make it harder for American defence firms to operate in the UK.”
Advent Internation (Boston) is not a defence firm, it is a "private equity business"; that, has maintained a London office since 1989 and purchased Cobham in 2019, so I think they are operating quite happily in the UK.
Also I suggest purchasing an existing UK-based defense business doesn't really satisfy the intent of "(US) defense firms operating in the UK".
Why not keep it, seems like a useful thing to have does it not?
Well, we seem to have long track record of selling anything of value.
We do don't we its like we have an aversion to be prosperous
Nationalize it
Nexperia bought it for £63 million which is chump change for a government. The UK should pay the £63m and keep it. Any American vultures will be interested in taking the British subsidy, firing staff and cutting other costs, and selling off whatever pieces they can.
I bet Tunnocks in Scotland will be the next wafer fab company to be bought out.
Tunnocks
Ye gods I hope not. The thought of a caramel wafer or snowball filled with Cadburys slime is disgusting.
Tunnocks' wafers are the correct size for the Imperial measures that Boris is bringing back. All that the buffoon will succeed in doing is impede the next generation of scientists and engineers in their work.
There you are
-> UK government officials are mulling a sale of chipmaker Newport Wafer Fab to a US consortium
It's not about national security, it's about selling it to the Americans using national security as a fake reason. Every time we hear politicians telling us to be worried about Russia or China or Zog, it is really about doing something to appease America.