Labor has criticized the government's “dithering and delay” over a decision on a proposed takeover of Britain's biggest semiconductor facility by a US company, warning it could lead to further job cuts at the Welsh factory.
The fate of the Newport wafer factory in south Wales has been uncertain for nearly two years, after the UK government first indicated it was concerned about its 2021 takeover by the Chinese-owned Nexperia company. National security concerns related to ownership of semiconductor technology by companies with ties to China.
The government ordered Nexperia to sell the factory in November 2022, raising questions about its future. During that time, about 100 of the 550 workers were laid off or quit. This includes 60 forced layoffs as of the end of last year.
American semiconductor company Vishay Intertechnology ultimately agreed to buy the factory for $177 million in November 2023, part of a planned $1.2 billion global investment. Department could benefit Newport.
The deal was welcomed by the Welsh Labor government at the time, but Westminster ministers have still not given the go-ahead for the deal almost three months later.
Jo Stevens, Shadow Secretary of State for Wales, has written to David TC Davies, Secretary of State for Wales, criticizing the Government for “dragging its feet” in deciding whether Vishay's proposed takeover can be pursued. .
The letter, seen by the Guardian, claims that the delays have left workers in a “damaging impasse with the potential for further investment and jobs to be lost”, adding that workers will not be able to continue working during a period of “dither and delay”. It added that staff reductions had been made in the department.
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. Dowden boasts on the government's website that authorities are “able to resolve most cases quickly and within a business-friendly 30 working days.”
The situation comes at a sensitive time, as 2,800 workers at the Port Talbot steelworks further west along the coast face the prospect of losing their jobs with the looming closure of two blast furnaces. There is.
Although the Newport wafer factory employs fewer workers than a steelworks, the company is one of the few British companies with the capacity to manufacture semiconductors. The factory makes chips to control power in devices ranging from vacuum cleaners to Jaguar and Land Rover cars, but not the smallest, most cutting-edge chips that are strategically most valuable. Not yet. Some argue that this fact undermines national values. Security concerns.
Mary Curtis, program manager at the Newport wafer fab, said all on-site development work has stopped and delays have prevented new orders from being taken and affected workers. Stated.
“Since November 2022, we are facing a period of great uncertainty and instability,” she said. “From a national security perspective, there should be no cause for concern. We don't know what caused the delay. Our employees are suffering from it as well, and so are Vishay and Nexperia.”
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In its letter to Mr Davis, Labor argued that Mr Bishay was “based in the United States, a close ally and strategic military partner”.
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 in South Wales.
“Our ambitious semiconductor strategy, announced earlier this year, will deliver up to £1bn of investment into the sector over the next 10 years.”
Mr. Bishay declined to comment.
