The British government on Wednesday demanded that a Chinese company sell its stake in a major semiconductor maker in the United Kingdom, a decision that could weigh on relations between London and Beijing.
“After a detailed assessment of national security, the Secretary of State for Business, Energy and Industrial Strategy, Shapps grantdecided to issue a final mandating regulation Nexeria to sell at least 86% of Fab Newport Wafers“, said an executive spokesperson in a statement.
This decision was made “to protect against potential harm to national security,” the statement added.
In his official briefing, Shapps indicated that there was a stake relating to “technology and know-how (…) that could harm the capabilities of the United Kingdom”.
Dutch company Nexperia, owned by Chinese mobile technology giant Wingtech, completed its acquisition of Newport Wafer Fab in July 2021, after paying an undisclosed amount.
The announcement that London is obliging Chinese companies to sell their shares comes at a time of escalating tensions between Britain and China, which were stressed upon arrival The new British Prime Minister, Rishi Sunak.
British authorities have banned Chinese giant Huawei in 2020 from deploying 5G networks in UK territory.
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