Beijing is trying to acquire as many chip companies in the world as possible to diversify sources of supply and reduce US control.

Prime Minister Boris Johnson has ordered his adviser to consider: Does the sale of the chip plant in Wales threaten national security? During his visit to Europe, US President Joe Biden asked his allies to consider the Chinese push for important economic sectors that could be of strategic importance, also on the basis of national security.

Prime Minister Boris Johnson said: “We have to decide what intellectual property the plant produces and how much China has interest in acquiring it. Are there any real security risks? That’s why I asked the National Security Adviser to look into it.” .. The BBC Sir Stephen Lovegrove’s team has already launched an investigation, according to his report.

The Chinese company operates in the Netherlands

Nexperia is registered in the Netherlands and already has a factory in Manchester. But at the time of its acquisition, Britain was still a member state of the European Union. Now a new situation has arisen due to Britain’s exit from the European Union.

Newport Wafer Fab operates in Wales, employing 450 people. Chips are made for semiconductors. It’s Britain’s largest chip maker, which also rose during the general chip shortage.

For this reason, the Chinese have developed a new chip program, the essence of which is to try to produce everything themselves, so that the Americans do not prevent the purchase with sanctions. Beijing is trying to acquire as many chip companies in the world as possible to diversify sources of supply and reduce US control.

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Action for National Security

Drew Nelson, the outgoing president of Newport Wafer Fab, who struck the deal with the Chinese, said he guaranteed the company’s future. The Welsh government did not even request a national security inquiry into this, but Prime Minister Boris Johnson bypassed it. He appears to have referenced the warnings of US President Biden, who warned his allies at the NATO summit not to have too close relations with China, which the US considers a strategic adversary.

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