UK government approves Vishay's Newport Wafer Fab purchase
Vishay Intertechnology's acquisition of Newport Wafer Fab has been cleared by the UK government, ending years of uncertainty over the UK's largest fab.
In November, US electronics giant Vishay announced it would buy the Welsh plant for a reported USD 177 million, and would invest approximately USD 1.2 billion over three years "to seize the opportunities created by the megatrends of e-mobility and sustainability needed for a Net Zero economy".
However, the deal still required national security clearance by the UK Cabinet Office. Now, the government has issued a consent order so the deal can go ahead.
This is the latest chapter in a tortuous story that goes back many years. Newport Wafer Fab was set up in 1982 and is now a 200mm semiconductor wafer fab that supplies primarily automotive markets. It has had many owners but its most recent custodian was Nexperia – a Netherlands-based but Chinese-owned company.
The Chinese connection was a source of concern for the UK government. In 2022, it ordered Nexperia to divest 86% of its share following a full national security assessment.
Responding to today's news, the UK government's Economy Minister Vaughan Gething said: “I am pleased that the long overdue decision to permit the acquisition of Newport Waferfab by Vishay International has now been taken. Wales excels in the compound semiconductor industry which offers enormous growth opportunities over the long term."
Vishay is a Fortune 1000 Company, which manufactures discrete semiconductors (diodes, rectifiers, MOSFETs, optoelectronics, and selected ICs) and passive electronic components (resistors, inductors, and capacitors). It says its goal for the Newport plant is to invest the necessary capital to set up production for its SiC Trench MOSFETs and diodes.
