Today, the Foreign Affairs Committee publishes a follow-up
report on the acquisition of Newport Wafer Fab.
The report follows up on the review of the acquisition that the
Prime Minister said he commissioned and concludes that, in the
absence of any evidence to the contrary, the assumption is that
the National Security Adviser’s review has not been started.
Newport Wafer Fab is one of the country’s largest manufacturers
of semiconductors. By the Government’s own admission,
semiconductors are critical to the UK’s national security and
wider global interests. The takeover of Newport Wafer Fab by
Nexperia, a company with links to the Chinese Communist Party,
represents the sale of one of the UK’s prized assets to a
strategic competitor and potentially compromises national
security.
The Committee calls on the Government to clarify:
- the circumstances in which the National Security Adviser is
engaged in reviews under the National Security and Investment Act
or Enterprise Acts;
- the reasons why the Prime Minister asked the National
Security Adviser to undertake a review of Newport Wafer Fab;
- why the National Security Adviser did not undertake such a
review;
The Committee urges the Government to provide an update on the
nature of the continued monitoring by the Investment Security
Unit.
Chair of the Foreign Affairs Committee, , said:
“For over a year, the Committee has voiced its concern over the
takeover of semiconductor manufacturer Newport Wafer Fab. The
National Security and Investment Act has been in place for over
three months yet we’ve seen no evidence of its use.
“Semiconductors are essential to every aspect of modern life and
Newport Wafer Fab is one of the country’s leading manufacturers.
Their takeover by Nexperia left many wondering why we are,
seemingly, handing over critical security infrastructure to
overseas companies with well-documented links to the Chinese
state.
“The long-term security of our nation relies not just on our
Armed Forces but on the resilience of our economy and that means
ensuring our future stability is never sacrificed for the sake of
short-term advancement.
“The Prime Minister’s assurances that work is underway are
welcome. However, so few details have been provided to the
Committee, that we are left with the unfortunate conclusion that
no review has taken place.
“Today, the Committee is calling on the Government to clarify the
reasons why the Prime Minister requested a review in Newport
Wafer Fab and why this review has not begun. The Government has
the tools, it just needs to use them.”
