British Semiconductor Maker May Close Due To National Security Dispute With Chinese Parent Company

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Britain’s biggest microchip factory, Newport Wafer Fab, grew sales and narrowed losses to $15.4 million even as its Chinese-owned parent warned a forced sale ordered by the U.K. government on national security grounds could lead to the closure of the plant.

“The results above reflect a period in which a significant amount of R&D activity is taking place in addition to a significant product ramp in factory utilization driven by legacy and multiple new customers,” Nexperia Newport said in the corporate filing published on Friday.

The South Wales plant, which makes silicon wafers used to make automotive chips, had changed hands several times before its sale to Nexperia, which itself was bought by the partially Chinese state-owned Wingtech in 2018. Nexperia and Wingtech would be allowed to retain its prior minority stake in the business if the forced sale went ahead.

a sweeping set of export restrictions barring certain advanced chips being shipped to China, while pushing grants worth tens of billions to switch production of chips to the United States, from Taiwan and China.

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