Newport Wafer Fab: 'No decision' on chip plant's sale to Chinese firm

Reports the takeover of the UK's largest microchip factory, Newport Wafer Fab, by Chinese-owned Nexperia has been approved have been denied.

The UK government said it was "considering the case and no decisions have been made" while Nexperia said it was unaware of such a decision.

The takeover has attracted controversy, over the firms links to China.

But the BBC understands the business secretary can, and still might, intervene.

Any such move by Kwasi Kwarteng, over concerns of key UK infrastructure falling into Chinese hands, would be under the National Security and Investment Act.

Newport Wafer Fab, which makes wafers of semiconductors at its plant in the Duffryn area of the city, employs 450 people.

Semiconductors, also known as microchips or chips, allow electricity to flow through devices and are the fundamental components of everything from smart phones to the vast data centres powering the internet.

Nexperia has headquarters in the Netherlands and a site in Manchester.

In a statement it said: "Nexperia has read some press articles reporting about a UK governmental decision to not intervene in Nexperia's acquisition of the Newport Wafer Fab of July 2021.

"Nexperia has not been notified of such a decision, has not heard on this matter from the UK government since it acquired the Fab, and previously informed the government to be ready to co-operate with any review."

"Since its initial investment, Nexperia has safeguarded Newport Wafer Fab's role within the UK's semiconductor industry and has been delivering on the plans to invest in the site to make it as successful as its Manchester Wafer Fab."

On Friday, Newport West Labour MP Ruth Jones said she was writing to the UK government Department for Business, Energy and Industrial Strategy seeking urgent clarity on the matter.