Boris Johnson orders review of China’s takeover of Britain’s largest semiconductor company
British Prime Minister Boris Johnson has said his government will consider a Chinese manufacturer’s purchase of Britain’s largest semiconductor producer, just a day after Downing Street said it would not intervene. The announcement comes three days after Chinese semiconductor maker Nexperia announced it was taking over Newport Wafer Fab. While the deal is yet to be confirmed, it is believed to give Beijing some control over UK electronics production. Previously, the Sydney Morning Herald reported that a $ 116 million pact had been signed between the two companies.
Speaking to reporters about the deal, Johnson said it was a “difficult process.” However, he was warned of looming xenophobic sentiments. “I don’t want an anti-Chinese spirit to lead us to try to hijack every investment from China in this country. It would be economically reckless ”. The semiconductor industry has gained geopolitical importance as China has targeted key technology for the future economy. Beijing has ambitions to take hold of the global semiconductor supply chain, as silicon-based products are the imperative component of all electronic devices.
Not reviewed under new laws
A major problem with the deal was that it had not been reviewed under the new UK National Security Act, which aims to stop high-risk foreign takeovers of critical infrastructure companies, a reported the Sydney News-Herald. Later, Tom Tugendhat, chairman of the UK’s select committee on foreign affairs, said the government needed to judge where the semiconductors made by Newport Wafer Fab have real intellectual property value and interest in China and s ‘there were real security implications. In addition, “I think semiconductors are of utmost importance to this country, one of the things I wanted to look at right away was whether we could be more self-sufficient. We are thinking about what to do. “he told reporters.
Anglo-Chinese relations have deteriorated in recent times with conflicts over a wide range of issues. Earlier today, a group of British lawmakers claimed that the British government should support a political boycott of the 2022 Winter Olympics in Beijing to pressure the Chinese government against the “genocide” of Uyghurs and others. ethnic groups in the northwestern province of Xinjiang. China is accused of mass murder and torture of Uyghurs, but denies all charges.
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