Commodities Economy News Shares Technology

Semiconductor: Britain’s largest manufacturer to be acquired by a Chinese group


Newport Wafer Fab (NWF), the U.K.’s largest fab, is set to be acquired by Chinese-owned Nexperia, for around £63 million ($87 million) next week, amid global semiconductor shortage.

Chinese media reported on the 4th that Nexperia, a subsidiary of Wingtech Technology, will acquire NWF, a British semiconductor company, for $87 million.

Nexperia is a Dutch company that is controlled by Wingtech Technology, which owns 98.2 percent of the company.

NWF is a South Wales-based private company founded in 1982. The company is one of a handful of semiconductor companies in the UK. NWF manufactures silicon chips that are used in automotive applications. NWF is also developing ‘composite semiconductors’ that are faster and more energy efficient.

“We are having constructive discussions with the local government of Wales about the future of the NWF,” Nexperia officials said.

According to the contract, Drum Nelson, the controlling shareholder of the NWF, intends to divide and take the composite semiconductor part.

China currently has limited access to semiconductor manufacturing technologies. Meanwhile, Taiwan’s TSMC and South Korea’s Samsung Electronics can still import cutting-edge technologies to develop chip manufacturing processes.

Nexperia was acquired in 2019 at a cost of $4.14 billion. Last year, Wingtech Technology acquired the rest of Nexperia’s shares from four investors, increasing its stake to 98.2 percent.

Huawei, Lenovo, Xiaomi, and many other leading firms are customers of Wingtech Technology. Wingtech’s imports last year totaled $8 billion, up 24.4 percent. Profit rose by 92.7 percent to $370 million.

Earlier this month, Nexperia announced that it plans to invest $700 million in European wafer factories, Asian test plants, and global R&D over the next 12-15 months.

For MetaNews.


Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

Related Posts