Newport Wafer Fab

Lord Fox Excerpts

Thursday 7th April 2022 Lords Chamber

Asked by

[Lord Fox]

To ask Her Majesty’s Government what is their position regarding the acquisition of Newport Wafer Fab by Chinese-owned technology company Nexperia.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the Government are considering the case and no decisions have been made. I am unable to comment on the details of businesses’ commercial transactions or on national security assessments. The Government always stand ready to act, where necessary, to protect the UK’s national security.

[Lord Fox (LD)]

My Lords, the problem here is that we seem to be looking at this issue in a vacuum. The Minister has said in the past that there are no specialist technologies at Newport Wafer Fab, but that ignores the need for industrial capacity to build technology. The Minister will say, and has said, that the factories will not move, so why should we care who owns them? I do care. There is a crippling shortage of microprocessors around the world that is hampering manufacturing. To combat that, the EU and the US have strategies. We seem to be waiting and seeing. So, to put this acquisition into context, can the Minister tell us when will we have a plan? Will he undertake not to allow this business to be sold until such a plan is forthcoming?

[Lord Callanan (Con)]

I cannot comment on the details of that particular transaction, which is still under consideration, but I can tell the noble Lord that DCMS is working on a semiconductor strategy that will also be published shortly.