The UK government will not intervene in the takeover of Britain’s biggest semiconductor plant by a Chinese-owned company despite the security concerns of ruling party MPs, according to reports on Friday.
British Prime Minister Boris Johnson ordered a review in July last year of the reported $87 million acquisition of Wales-based Newport Wafer Fab by Netherlands-based company Nexperia.
Nexperia is owned by Chinese smartphone company Wingtech.
The review by national security adviser Stephen Lovegrove concluded that there were not enough concerns to block the deal, according to the Politico website.
Nexperia said on Friday it had not been notified of any decision. It said it had not heard from the government since it bought Newport Wafer Fab and "previously informed the government to be ready to co-operate with any review".
MPs had expressed alarm at the deal because it moved strategically vital companies and assets abroad. In a report, Sovereignty for Sale, the Foreign Affairs select committee said that the takeover “represents the sale of one of the UK’s prized assets to a strategic competitor”.
The sale came at a time when global chips, which are vital for manufacturing, are in short supply because of a Covid-19-fuelled surge in demand for home electronic devices.
“This is an error,” said the chairman of the committee, Tom Tugendhat, in a tweet on Friday.
Some of the greatest security concerns involving the takeover of UK companies are linked to China. In 2020, the UK banned Chinese telecoms company Huawei from involvement in the installation of Britain’s 5G broadband network because of US concerns about spying.
Branding Huawei a security threat, the US barred the company from the American market, cut it off from global supply chains and mounted pressure on allies to ban or remove its equipment from their national telecoms systems.
China criticised the move and issued a warning that the decision could affect investment in the UK and was a “betrayal” of the principles of free trade.
The UK introduced a new law last year that allowed the government to screen certain deals because of national security concerns.
Mr Tugendhat told Politico: “It is not clear why we haven’t used our new powers under the National Security and Investment Act to fully review the takeover of one of our leading compound semiconductor companies.
“This is an area where China is sinking billions to compete. The government has no clear strategy to protect what is left of our semiconductor industry.”
The UK government said it was continuing to monitor the situation and would take further action if necessary.
“The Government is considering the case and no decisions have been made,” a government spokesperson said.
SPECS
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
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Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
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Engine: twin-turbocharged 3.5-liter V6
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
'Midnights'
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