Former Newport Wafer Fab owner linked to buyback from China's Nexperia
(2022/09/15)
- Reference: 1663237931
- News link: https://www.theregister.co.uk/2022/09/15/newport_wafer_fab/
- Source link:
The former owner of Newport Wafer Fab (NWF) is being linked with a buyback of the business that he sold to China's Nexperia, a sale currently being reviewed on grounds of national security by the British government.
The [1]FT reports that Drew Nelson – who ran the UK's largest semiconductor maker before it was bought for £63 million ($72 million) in 2021 by Netherlands-based Nexperia, which is itself owned by Hong Kong's [2]Wingtech Technologies – is linking arms with private equity biz Palladian Investment Partners to lodge a bid for NWF.
Nelson was said to be offered first refusal on a buyback, as per the terms of the takeover. He ran [3]Wales-based wafer supplier IQE until the close of 2021, and incorporated a new entity branded [4]Newport Wafer Fab 10 in the UK in July last year.
[5]
The Register has asked Nelson and Palladian Investment Partners to comment.
[6]
[7]
NWF operates the UK's largest semiconductor manufacturing operation, making around 32,000 wafers a month. This is why the UK government stepped in and continues to [8]scrutinize implications of the sale, using powers from the National Security and Investment Act 2021 to take a closer look.
Nexperia already held a 14 percent shareholding in NWF before the buyout, and, according to a source quoted in the report, the UK administration is considering asking the company to reduce the ownership substantially.
[9]
A decision on the current national security assessment is due in October, Nexperia told us earlier this month, after the Department for Business, Energy & Industrial Strategy's (BEIS) prior deadline came and went, for the second time. The process began in May.
"The Secretary of State has agreed a voluntary period with Nexperia BV regarding their acquisition of Newport Wafer Fab, to consider whether to make a final order under the National Security and Investment Act and, if so, what provision a final order should contain," a spokesperson for BEIS told us last week.
[10]Newport Wafer Fab sale to Chinese company held up again by UK.gov's probe
[11]UK government will not step in over Altice's growing stake in BT
[12]UK blocks sale of chip design software company to China
[13]The trade ban that wasn't: US allows 94% of restricted tech exports to China anyway
Nexperia spoke to a BEIS Committee in July and [14]told it the protracted decision-making was a source of "frustration" for the company, adding the "investigation needs to be done quickly" as "customers are becoming impatient on the clarity."
The company's UK manager, Toni Versluijs, added: "Last week, a young lady in Newport stepped into the office of a general manager. And she said, 'Look, I just bought a new house. After this review, will I still have a job?' I think it's in everybody's interest to give clarification."
Another chip veteran, Ron Black, the former boss of Imagination Technologies, which was itself blocked from being sold to Chinese owners, told the FT that the longer the UK government deliberate the greater chance that it will lose valuable staff.
[15]
"These assets are very dangerous to leave in unstable conditions," he said. ®
Get our [16]Tech Resources
[1] https://www.ft.com/content/5a90e76b-a7bf-441b-b98d-9555decff2c2
[2] https://www.theregister.com/2021/08/17/newport_wafer_fab_sold_to_wingtech/
[3] https://www.theregister.com/2022/07/18/iqe_tower_semiconductor/
[4] https://find-and-update.company-information.service.gov.uk/company/13494682
[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=2YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[6] 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=44YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2022/08/19/uk_chip_company_sale_china/
[9] 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=44YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2022/09/06/uk_government_demand_more_time/
[11] https://www.theregister.com/2022/08/23/uk_bt_national_security_altice/
[12] https://www.theregister.com/2022/08/19/uk_chip_company_sale_china/
[13] https://www.theregister.com/2022/08/17/china_us_export_ban_truth/
[14] https://www.theregister.com/2022/07/06/nexperia_no_plans_close/
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[16] https://whitepapers.theregister.com/
The [1]FT reports that Drew Nelson – who ran the UK's largest semiconductor maker before it was bought for £63 million ($72 million) in 2021 by Netherlands-based Nexperia, which is itself owned by Hong Kong's [2]Wingtech Technologies – is linking arms with private equity biz Palladian Investment Partners to lodge a bid for NWF.
Nelson was said to be offered first refusal on a buyback, as per the terms of the takeover. He ran [3]Wales-based wafer supplier IQE until the close of 2021, and incorporated a new entity branded [4]Newport Wafer Fab 10 in the UK in July last year.
[5]
The Register has asked Nelson and Palladian Investment Partners to comment.
[6]
[7]
NWF operates the UK's largest semiconductor manufacturing operation, making around 32,000 wafers a month. This is why the UK government stepped in and continues to [8]scrutinize implications of the sale, using powers from the National Security and Investment Act 2021 to take a closer look.
Nexperia already held a 14 percent shareholding in NWF before the buyout, and, according to a source quoted in the report, the UK administration is considering asking the company to reduce the ownership substantially.
[9]
A decision on the current national security assessment is due in October, Nexperia told us earlier this month, after the Department for Business, Energy & Industrial Strategy's (BEIS) prior deadline came and went, for the second time. The process began in May.
"The Secretary of State has agreed a voluntary period with Nexperia BV regarding their acquisition of Newport Wafer Fab, to consider whether to make a final order under the National Security and Investment Act and, if so, what provision a final order should contain," a spokesperson for BEIS told us last week.
[10]Newport Wafer Fab sale to Chinese company held up again by UK.gov's probe
[11]UK government will not step in over Altice's growing stake in BT
[12]UK blocks sale of chip design software company to China
[13]The trade ban that wasn't: US allows 94% of restricted tech exports to China anyway
Nexperia spoke to a BEIS Committee in July and [14]told it the protracted decision-making was a source of "frustration" for the company, adding the "investigation needs to be done quickly" as "customers are becoming impatient on the clarity."
The company's UK manager, Toni Versluijs, added: "Last week, a young lady in Newport stepped into the office of a general manager. And she said, 'Look, I just bought a new house. After this review, will I still have a job?' I think it's in everybody's interest to give clarification."
Another chip veteran, Ron Black, the former boss of Imagination Technologies, which was itself blocked from being sold to Chinese owners, told the FT that the longer the UK government deliberate the greater chance that it will lose valuable staff.
[15]
"These assets are very dangerous to leave in unstable conditions," he said. ®
Get our [16]Tech Resources
[1] https://www.ft.com/content/5a90e76b-a7bf-441b-b98d-9555decff2c2
[2] https://www.theregister.com/2021/08/17/newport_wafer_fab_sold_to_wingtech/
[3] https://www.theregister.com/2022/07/18/iqe_tower_semiconductor/
[4] https://find-and-update.company-information.service.gov.uk/company/13494682
[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=2YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[6] 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=44YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2022/08/19/uk_chip_company_sale_china/
[9] 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=44YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2022/09/06/uk_government_demand_more_time/
[11] https://www.theregister.com/2022/08/23/uk_bt_national_security_altice/
[12] https://www.theregister.com/2022/08/19/uk_chip_company_sale_china/
[13] https://www.theregister.com/2022/08/17/china_us_export_ban_truth/
[14] https://www.theregister.com/2022/07/06/nexperia_no_plans_close/
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YyNMIed0nRpOJYWTVgQK6wAAAFA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[16] https://whitepapers.theregister.com/
Re: The UK would rather see the plant closed
VoiceOfTruth
One hour later, three down votes. Three people who think we should kowtow to Washington rather that act in our own interests.
Re: The UK would rather see the plant closed
Anonymous Coward
Now 4 people, who prefer to see cooperation between like minded democracies, rather than your posts today promoting the political interests of despotic regimes in Russia, China and Iran.
Re: The UK would rather see the plant closed
VoiceOfTruth
We saw how American democracy and cooperation works. Huawei was considered not insecure in the UK. Then the USA came along and said "if you don't cancel Huawei there will be trouble."
I haven't promoted anyone. I'm just pointing out where the despotism as you put it really is.
Inequitable use of said assets is dangerous abuse giving rise to unexpected consequences
amanfromMars 1
"These assets are very dangerous to leave in unstable conditions," he said.
And aint that the sure gospel truth.
The UK would rather see the plant closed
... than upset Uncle Sam. It's not Chinese influence this country should be worried about. It is the constant kowtowing to Washington.