Source · Select Committees · Business and Trade Committee
Recommendation 4
4
Deferred
Paragraph: 67
We will further consider the Nexperia case, via the National Security and Investment Sub-Committee, once...
Conclusion
We will further consider the Nexperia case, via the National Security and Investment Sub-Committee, once the period for appeal has expired. In the meantime, the Department should work proactively to ensure a successful transfer of the Newport site to a new owner. Ministers should update the Committee on progress made.
Government Response Summary
The government cannot provide an update on the Nexperia case until judicial review proceedings have been completed.
Paragraph Reference:
67
Government Response
Deferred
HM Government
Deferred
The Secretary of State for BEIS issued a Final Order in November on the takeover of the Newport Wafer Fab by Nexperia, which stipulates the acquisition constitutes a trigger event under the NSI Act. The order has the effect of requiring Nexperia to sell at least 86% of Newport Wafer Fab to prevent, remedy, or mitigate the national security risks. The Secretary of State considers that the Final Order is necessary and proportionate to mitigate the risk to national security. The Secretary of State considered that a risk to national security from this acquisition relates to the technology and know-how that could result from a potential reintroduction of compound semiconductor activities at the Newport site, and the potential for those activities to undermine UK capabilities. The location of the site could facilitate access to technological expertise and know-how in the South Wales Cluster, and the links between the site and the Cluster may prevent the Cluster being engaged in future projects relevant to national security. The Semiconductor industry in the UK: Further Government Response 5 As the company Nexperia has launched judicial review proceedings against the Government on this decision, we still cannot provide any further update until this has been completed, to avoid impacting the results of this review, or the commercial process.