Asked by: Ruth Jones (Labour - Newport West and Islwyn)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what process his Department followed to prepare the national security assessment prior to the Newport Wafer Fab divestment decision; and what evidence his Department received as part of that process.
Answered by Nusrat Ghani
The Secretary of State for Business, Energy and Industrial Strategy takes decisions under the National Security and Investment Act 2021 in a quasi-judicial capacity. The Investment Security Unit coordinates expertise from across Government so that the Secretary of State may make decisions based on the evidence. It would not be appropriate to comment on the detail of national security assessments.
Asked by: Ruth Jones (Labour - Newport West and Islwyn)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he considered evidence (a) that the UK and Welsh Governments (i) were aware in advance of and (ii) raised no objections to the acquisition of Newport Wafer Fab by Nexperia and (b) of the level of investment by Nexperia into the Water Fab since its acquisition when making his decision on divestment.
Answered by Nusrat Ghani
The National Security and Investment Act was not in force when the original acquisition took place in 2021. The Secretary of State used retrospective powers to call-in and assess the acquisition under the Act. The Secretary of State takes decisions under the Act in a quasi-judicial capacity, based on the facts and evidence presented to him. The Act only allows the Secretary of State to make a Final Order to prevent, remedy or mitigate risks to national security, and not for wider political or economic reasons. As you’d expect, I’m unable to comment on the details of national security assessments.
Asked by: Ruth Jones (Labour - Newport West and Islwyn)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his officials visited the Newport Wafer Fab prior to the announcement of the divestment decision.
Answered by Nusrat Ghani
On 9 May 2022, Government officials with expertise in the semiconductor sector visited the facility and met representatives of Nexperia. The Secretary of State for the Department for Business, Energy and Industrial Strategy called in the acquisition and began the assessment process on 25 May 2022. As is required under the National Security and Investment Act, the Secretary of State considered all representations made by the company when making the Final Order.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his Department's decision entitled Acquisition of Newport Wafer Fab by Nexperia BV: notice of final order, published 16 November 2022, for what reasons it was determined that Nexperia BV should sell at least 86 per cent of Nexperia Newport Limited.
Answered by Nusrat Ghani
Following a detailed national security assessment, the Secretary of State for Business, Energy and Industrial Strategy considered that the Final Order requiring Nexperia BV to divest at least 86% of its shareholding in Nexperia Newport is necessary and proportionate to mitigate the national security risks. The Government cannot comment on the detail of those risks, but they are summarised in the notice of the Final Order which is published on GOV.UK.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to his oral contribution of 21 November 2022, Official Report, col 35, what steps he is taking to ensure all jobs at the Newport Wafer Fab site are protected following the Final Order notice under the National Security and Investment Act.
Answered by Nusrat Ghani
The Government understands the importance of Newport Wafer Fab (renamed Nexperia Newport) to the local economy and the South Wales semiconductor Cluster and that this will be an uncertain time for employees. Decisions regarding the day-to-day running of the Newport site is a matter for the owners, but officials will work closely with Nexperia BV to implement the Secretary of State’s decision.
Asked by: Wayne David (Labour - Caerphilly)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help ensure that the jobs at the Newport Wafer Fab are protected.
Answered by Nusrat Ghani
The Government understands the importance Nexperia Newport Ltd (formerly Newport Wafer Fab) to the local economy and the South Wales semiconductor Cluster and that this will be an uncertain time for employees. Decisions regarding the day-to-day running of the Newport site are a matter for the owners, but officials will work closely with Nexperia BV to implement the Secretary of State’s decision.
Asked by: Wayne David (Labour - Caerphilly)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will publish the recommendation from the BEIS Investment Security Unit on the Newport Wafer Fab divestment decision.
Answered by Nusrat Ghani
The Secretary of State for Business, Energy and Industrial Strategy takes decisions under the National Security and Investment Act 2021 in a quasi-judicial capacity, based on the facts and evidence. It would not be appropriate to share details of the national security assessment, including advice provided by officials to the Secretary of State in support of his quasi-judicial role.
Asked by: Lord West of Spithead (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government to what extent the decision regarding the merger of Nexperia and Newport Wafer Fab will be based on (1) the risk of Chinese ownership of the UK semiconductor industry, or (2) the risk of damage to the UK semiconductor industry.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
On 25 May, the Secretary of State called in the acquisition by Nexperia of Newport Wafer Fab for a full national security assessment under the National Security and Investment Act. That process is underway and will proceed in line with statutory timescales. It would not be appropriate to comment further on the Government’s assessment at this stage.
Separately to this case, the Department for Digital, Culture, Media and Sport is undertaking a review of the semiconductor sector, working closely with industry experts and representative bodies. The outcome of that review will be concluded later in the year.
Asked by: Lord West of Spithead (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether the decision of the Secretary of State for Business, Energy and Industrial Strategy regarding the merger of Nexperia and Newport Wafer Fab will be taken prior to the publication of their Semiconductor Strategy.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
On 25 May, the Secretary of State called in the acquisition by Nexperia of Newport Wafer Fab for a full national security assessment under the National Security and Investment Act. That process is underway and will proceed in line with statutory timescales. It would not be appropriate to comment further on the Government’s assessment at this stage.
Separately to this case, the Department for Digital, Culture, Media and Sport is undertaking a review of the semiconductor sector, working closely with industry experts and representative bodies. The outcome of that review will be concluded later in the year.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what is the current status of the bid by a Chinese owned company to purchase Newport Wafer Fab; how many UK businesses in the semi-conductor supply chain are owned by companies based outside the UK; and what assessment they have made of (1) the value of Newport Wafer Fab’s intellectual property, and (2) the sensitivity of any defence contracts it holds.
Answered by Lord Callanan - Shadow Minister (Foreign, Commonwealth and Development Office)
On 5 July 2021, Nexperia announced on its website that it had completed a transaction to acquire 100% of Newport Wafer Fab.
The Government recognises the importance of semiconductor technology to key UK industries, and the wider digital ecosystem. Supply chains for semiconductors are extremely complex, spanning a large number of countries.
The Government is not able to comment on a company’s commercially sensitive information, nor can the Government comment on the detail businesses’ commercial transactions or on national security assessments.