Grant Shapps blocks sale of microchip firm to Chinese company over security fears

Nexperia says the move puts 500 jobs at risk

(EPA)

Grant Shapps has blocked the sale of a UK microchip manufacturer to a Chinese-owned company, citing a potential risk to national security.

Newport Wafer Fab is one of the UK’s largest manufacturers of semiconductors and there was concern over its reported £63m purchase by Nexperia, a company said to be linked to the Chinese Communist Party.

Nexperia bought a further 86 per cent of shares in Newport Wafer Fab in July 2021, taking its total shareholding to 100 per cent.