London: The British government has blocked a Chinese-owned company's takeover of a Wales-based microchip maker, calling it a risk to national security. Nexperia, a Netherlands-based firm owned by China's Wingtech, announced last year that it had acquired a 100 per cent stake in Newport Wafer Fab, one of Britain's biggest semiconductor manufacturers.
The government said late Wednesday that Business Secretary Grant Shapps issued an order "requiring Nexperia to sell at least 86% of Newport Wafer Fab to prevent against potential national security risks."
Shapps said development of the Newport site by Nexperia could "undermine U.K. capabilities" in the sector. Nexperia said it was "shocked" by the decision.
"The decision is wrong, and we will appeal to overturn this divestment order to protect the over 500 jobs at Newport," the firm's U.K. country manager, Toni Versluijs, said. "This decision sends a clear signal that the U.K. is closed for business."
Britain has grappled with balancing the importance of economic ties with China and concerns about Beijing's growing global clout and assertiveness.
The head of Britain's MI5 intelligence agency, Ken McCallum, on Wednesday highlighted the "scale and breadth of (China's) information acquisition, using not only intelligence officers and cyberhackers but businesspeople and researchers to steal government and commercial information alike."