Newport Wafer Fab Sale

Tom Tugendhat Excerpts

Thursday 15th July 2021 Commons Chamber

[Amanda Solloway]

As laid out in the integrated review, China is a systemic competitor. The scale and reach of China’s economy, the size of its population, its technological advancement and increasing ambition to project its influence on the global stage, for example through the belt and road initiative, will have profound implications worldwide. Open, trading economies such as the UK will need to engage with China and remain open to Chinese trade and investment, but they must protect themselves against practices that have an adverse effect on prosperity and security. Co-operation with China is vital in tackling transnational-type challenges, particularly climate change and biodiversity loss.

The UK wants a mature, positive relationship with China, based on mutual respect and trust. There is considerable scope for constructive engagement and co-operation, but as we strive for that positive relationship, we will not sacrifice either our values or our security. It has always been the case that where we have concerns, we will raise them, and where we need to intervene, we will. The Government have a range of legislative and regulatory powers to protect infrastructure and critical services, including the new National Security and Investment Act 2021. The NSI Act is nation-agnostic: acquisitions should be considered on a case-by-case basis, which will help to ensure that the Act is not discriminatory and that we uphold our World Trade Organisation obligations.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

I pay tribute to my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) for the timing of his urgent question—which is clearly rather better than my timing. May I ask the Minister—who is very kindly in her place—about the National Security and Investment Act 2021? The Act set forth various conditions for securing various elements of British industry, but as set out, that was all to be done by central Government, not by devolved Administrations. Clearly this is one of those moments, because there is a global semiconductor chip shortage, delaying the production of white goods, cars and, indeed, military equipment.

I am told that Newport Wafer Fab is a key partner for the development of—I am afraid I will have to use the technical terms, because I am not qualified to translate them—RF MMIC high-frequency GaN designs for defence 5G radar systems. This is a £5.4 million project led by the Compound Semiconductor Applications Catapult and Cardiff University, with Newport Wafer Fab providing process development expertise and a route to scale up within a proposed expansion of Newport Wafer Fab 10.

If that does not put Newport Wafer Fab into the national security bracket, I do not know what does. The idea that this is a matter for the Assembly or the Government in Wales is, I am afraid, simply not the case. The Prime Minister seems to have pre-empted that, as he has asked the National Security Adviser, as he told the Liaison Committee the other day, to have a look into this. Will the Minister now commit, on behalf of her Department, to present the National Security Adviser’s report to Parliament, to allow us to hear the evaluation of Her Majesty’s Government and to debate it?

[Amanda Solloway]

I acknowledge the work that my hon. Friend does, which is greatly appreciated. As he will know, the Act focuses on acquisitions of control over qualifying and entitled assets. That means that once the Act is commenced we will be able to scrutinise and, if necessary, intervene in takeover companies and in the purchase of individual assets, such as intellectual property. The Government are absolutely clear that where concerns are raised we will intervene. However, my hon. Friend and the House will appreciate that I cannot go into any detail or comment on commercial transactions or national security assessments.