Communist China Seizes Control of Britain’s Largest Microchip Factory

The left elite in the West see no evil, hear no evil, speak nothing critical of the CCP, but the CCP is in a stealth war against the West.

Quick note: Tech giants are shutting us down. You know this. Twitter, LinkedIn, Google Adsense, Pinterest permanently banned us. Facebook, Google search et al have shadow-banned, suspended and deleted us from your news feeds. They are disappearing us. But we are here. We will not waver. We will not tire. We will not falter, and we will not fail. Freedom will prevail.

Subscribe to Geller Report newsletter here — it’s free and it’s critical NOW when informed decision making and opinion is essential to America's survival. Share our posts on your social channels and with your email contacts. Fight the great fight.

Remember, YOU make the work possible. If you can, please contribute to Geller Report.

Communist China Seizes Control of Britain’s Largest Microchip Factory

By: Kurt Zindulka, Breitbart News, July 7, 2021:

A state-backed Communist Chinese firm has conducted a hostile takeover of the UK’s largest microchip factory, raising concerns about Beijing’s growing control of the market during a global chip shortage.

On Monday, Dutch semiconductor manufacturer Nexperia, which is controlled by the China-owned electronics firm Wingtech, took 100 per cent control of the Newport Wafer Fab’s factory in South Wales after using a contractural clause to seize the company.

In 2019, Nexperia signed a contract to support the factory in exchange for Newport Wafer Fab putting up its factory as collateral. After the British company was unable to fulfil the manufacturing quota obligations in the deal, the Chinese owned enterprise was able to take full control of the factory, The Telegraph reported.

The Welsh firm, which produces silicon chips for the automotive industry and has been developing next-generation “compound semiconductors”, has been hard hit over the past year as the Chinese coronavirus crisis resulted in a global chip shortage. Nexperia has agreed to pay out £65 million to pay off Newport Wafer Fab’s debts in exchange for taking ownership.

Prior to the Chinese takeover, Newport Wafer Fab had called on the British government to step in and prevent the sale and to help find alternative funding sources. Yet, despite the concerns over national security, the Tory government did not intervene.

The move is reminiscent of China’s Belt and Road ‘debt-trap diplomacy’, in which the Communist nation offers predatory loans to developing nations throughout Asia, Africa, South America, and Eastern Europe for infrastructure projects — often built with Chinese labour and materials — and when the countries fail to repay the loans, the CCP seizes the assets.

Questions have been raised as to why the UK government did not use the recently enacted National Security and Investment Act to prevent the sale to the Chinese on national security grounds, as microchips and semiconductors have been highlighted by both the United States and the European Union as one of the key areas of concern in preventing Chinese technological dominance.

Speaking to Breitbart London, Hong Kong Watch chairman Benedict Rogers said: “This is yet another example of the naivety and lack of wisdom in our relations with the Chinese Communist Party regime and our failures to secure our critical industries and infrastructure.

“To allow a takeover of this kind is simply inviting threats to national security. The National Security and Investment Act was designed to prevent such takeovers, and so I hope that this deal will be urgently reviewed under that legislation.”

The head of the government’s China Research Group and chairman of the Foreign Affairs Select Committee, Tom Tugendhat, said: “Many of our allies have expressed serious concerns about this deal.

“This is the first real test of the new legislation since its introduction in April. The Government is yet to explain why we are turning a blind eye to Britain’s largest semiconductor foundry falling into the hands of an entity from a country that has a track record of using technology to create geopolitical leverage.”

In a letter to Business Secretary Kwasi Kwarteng last month, Tugendhat warned: “With the world experiencing a shortage in semiconductor production and companies and countries competing over the limited supply that exists, it is crucial that the UK protects its strategically valuable manufacturing resources.”

Responding, the Tory government minister claimed that the Chinese acquisition has been “considered thoroughly” and was determined not to be a threat to national security.

Mr Kwarteng said that the government “will continue to monitor the situation closely and use our powers if appropriate”, but at present, the government considers it to be a “commercial matter” under the jurisdiction of the local Welsh government.

Have a tip we should know? Your anonymity is NEVER compromised. Email tips@thegellerreport.com

The Truth Must be Told

Your contribution supports independent journalism

Please take a moment to consider this. Now, more than ever, people are reading Geller Report for news they won't get anywhere else. But advertising revenues have all but disappeared. Google Adsense is the online advertising monopoly and they have banned us. Social media giants like Facebook and Twitter have blocked and shadow-banned our accounts. But we won't put up a paywall. Because never has the free world needed independent journalism more.

Everyone who reads our reporting knows the Geller Report covers the news the media won't. We cannot do our ground-breaking report without your support. We must continue to report on the global jihad and the left's war on freedom. Our readers’ contributions make that possible.

Geller Report's independent, investigative journalism takes a lot of time, money and hard work to produce. But we do it because we believe our work is critical in the fight for freedom and because it is your fight, too.

Please contribute here.


Make a monthly commitment to support The Geller Report – choose the option that suits you best.

Pin It on Pinterest