(Nexperia), a subsidiary of Chinese semiconductor company Wentai Technology, will buy (Newport Wafer Fab, Britain's largest chipmaker, for about 63 million pounds (564 million yuan) next week, according to two people familiar with the matter. The two sources spoke on the condition of anonymity because the news has not yet been made public.
Anshi Semiconductor is a Dutch company 100% controlled by Wentai Technology. According to foreign media reports, the company said that negotiations on the deal are under way. According to sources, the acquisition could be announced as soon as Monday or Tuesday.
NWF's chip factory, located in Newport, South Wales, UK, was founded in 1982 and is one of the few semiconductor manufacturers in the UK.
A spokesman for Anshi Semiconductor told foreign media: "We are having constructive talks with the NWF and Welsh governments on the future of the acquisition of NWF." We cannot comment further until we come to a conclusion. "
There is a risk of British government intervention.
The deal comes at a time of global chip shortages and efforts to improve independence in semiconductor production, meaning the deal is likely to be reviewed or intervened by the UK government.
A British government spokesman told foreign media: "We know that Anshi Semiconductor will acquire NWF." Although we do not think it is appropriate to intervene at this time, we will continue to closely monitor the situation, and if the situation changes, we will not hesitate to use our power. "
They added: "We remain committed to the semiconductor industry and the key role it plays in the UK economy."
The purchase price is quite low.
If the source's information is confirmed, NWF's asking price of 63 million pounds is much lower than another acquisition this week, Texas Instruments company (Texas Instruments) announced this week that it will pay $900 million (5.82 billion yuan) for a vacant Micron fab in Utah.
NWF is currently saddled with several outstanding debts, including £20 million from HSBC and £18 million from the Welsh government, a source said, adding that the debts would be repaid after sale. Meanwhile, Drew Nelson (Drew Nelson), a major shareholder of NWF, will receive about 15 million pounds (134 million yuan) from the acquisition, according to a person familiar with the matter.
NWF makes silicon wafers for power applications in the automotive industry, while developing more advanced "compound semiconductors" that are faster and more energy efficient.
Under the agreement, Nelson will be allowed to spin off part of NWF's compound semiconductor business and plans to reinvest its proceeds in the new company, according to people familiar with the matter. He is also allowed to keep the name of Xingang fab (Newport Wafer Fab).
