A £144m takeover of Wales’ leading tech company has been finalised with its new American owners committing to a £1bn expansion.
The 海角视频’s biggest microchip plant at , which has been trading as Nexperia Newport but was previously known as Newport Wafer Fab, has been acquired by New York listed Vishay Intertechnology.
The facility was put up for sale last year after the 海角视频 Government ruled on national interest and security grounds that it came out of Chinese ownership, The plant was owned by Amsterdam-based tech firm Nexperia - which is wholly-owned by Chinese and Shanghai-listed Wingtech.
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The facility, which employs 500, has been operating as a closed fab. The 海角视频 Government used the National Security and Investment Act of 2021 to force Nexperia to divest. Following a sales process New York listed Vishay Intertechnology agreed a £144m cash deal last November, subject to final 海角视频 Government approval, which has been secured.
The American firm has said it plans to invest £1bn into the 200m semiconductor wafer fab over the next three years to take advantage of demand for semiconductors in areas like electric vehicles as well as from the wider drive to net zero. It said a takeover will ensure its profitability, while cementing its position as a vital clog in the emerging south Wales compound semiconductor cluster.
Nexperia, having previously held a minority 14% shareholding in the facility, were able to take total ownership having evoked a clause in the event of the facility being unable to meet customer orders. This saw it acquiring the business for just £63m in the summer of 2021 from a company called Nuptune Six.
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Secretary of State for Wales, David TC Davies, said: "The conclusion of the necessary national security assessment into the acquisition of Nexperia will come as welcome news for the workforce and for the wider area.
“I am pleased that the sale can now move ahead and I look forward to hearing more about Vishay Intertechnology’s plans.”
Economy Minister Vaughan Gething said: “I am pleased that the long overdue decision to permit the acquisition of the business by Vishay Intertechnology has now been taken.
“Wales excels in the compound semiconductor industry which offers enormous growth opportunities over the long term. From mobile phones to electric vehicles we all rely on the products made in South East Wales as part of a global industry that is set to be worth around $1trn by 2030. Today’s news brings security to a hugely talented workforce after a long period of uncertainty and I hope they can look forward to a new sense of optimism.
“In our discussions over the past 18 months, Vishay have set out their intention to invest in the site and work with the existing semiconductor cluster in South Wales with a real sense of ambition for the opportunities this growing sector offers to young people in Wales in particular. We look forward to a productive working relationship with the company.
“Our economic mission makes clear the importance we attach to the compound semiconductor cluster given the enormous role it will play in creating thousands of quality jobs in the years to come.
“We have supported that growth by agreeing an investment zone for Newport and and we call on the 海角视频 Government to work with us through its semiconductor strategy to ensure this Welsh strength achieves its full potential.
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Shadow Welsh Secretary Welsh Secretary Jo Stevens said: "This is long-overdue good news for workers in Newport who have campaigned hard for 海角视频 ministers to end their prevarication.
“The government claimed they could process decisions like this in a “business friendly” 30 days, but ministers dragged their feet for months, risking livelihoods and valuable investment in a strategically significant industry.
“This Conservative Government has no plan for the success of Welsh industry. will rekindle Wales’s proud industrial roots with the jobs of the future.”