Huge uncertainty facing hundreds of staff at large factory in Wales

Hundreds of staff at a giant factory in Wales are waiting nervously as a takeover bid is delayed. Nexperia Newport supplies semiconductors, or microchips, used in modern technology such as cars, smartphones and kitchen appliances.

Nexperia (formerly known as Newport Wafer Fab) in Duffryn is the UK's largest semiconductor manufacturer and one of Wales' largest employers. In 2022, the British government ordered Chinese-owned Nexperia, which had requisitioned the site the previous year, to sell the factory on national security grounds.

Last November, US company Vishay Intertechnology announced it had bought the site in a £144m deal, but three months later ministers are still yet to give it the go-ahead. There are concerns from politicians and workers that this will lead to job losses, with calls for clarification following reports that around 100 of the 550 staff have already resigned or been fired. There is.

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Last week, the Guardian reported that Wales' shadow secretary of state, Jo Stevens, had written to Wales' secretary of state, David – Reported that it was sent to TC Davis. First. The company said some layoffs were made during “dithering and delays,” with delays leaving workers in “a damaging limbo with the potential for further investment and job losses.” It is claimed that there is. He will see the loss of 3,000 jobs at the giant Tata steel factory in Port Talbot. Read the town's reaction to the decision here.

NEEXLIA Newport has had a tumultuous past few years. In 2021, it was acquired by Neexperia, a Chinese-owned company headquartered in the Netherlands. But in 2022, Kwasikwarteng, then the business secretary, said the government welcomed foreign investment but said it “must not threaten the UK's national security”. The Newport plant makes microchips for power control in devices such as vacuum cleaners and cars, but it has been cited for national security concerns over the fact that it does not make smaller chips, which are more strategically valuable. There are also efforts to quell concerns.

After this review, the government ordered Nexperia to sell the factory based on the National Security and Investment Law on grounds of national interest and security. He said the risks related to access to technology and know-how, which could undermine the UK's capabilities.

Despite initially indicating that it intended to appeal against the sale request, NExperi later appointed advisers to do so, and in November 2023, US tech giant Vishay Intertechnology sold it for £144m. announced that it would acquire the facility with a substantial contract. Joel Smekal, president and chief executive officer of Vishay, said the acquisition[bring] We bring together our capacity expansion plans for automotive and industrial end market customers and the UK's strategic objective of improving supply chain resilience. ”

Oliver Dowden, the deputy prime minister and head of the Cabinet Office, has the final say on approving acquisitions that fall under national security rules. The government's website states that authorities are “able to resolve most cases within a quick and business-friendly 30 working days,” but three months after the initial announcement there has been no sign of confirmation, and political Requests to cabinet ministers have been made one after another from family members and staff. To clarify the situation of staff who are feeling anxious about their jobs.

A UK government spokesperson said: “We are fully committed to ensuring that the UK semiconductor industry continues to grow and thrive across the UK, including South Wales. Our ambitious semiconductor strategy, announced earlier this year, We will deliver up to £1 billion of investment into this area.”