- A huge geopolitical imperativeness has been gained by the semiconductor sector because the key technology has been targeted by China for the upcoming economy
- For a long time, Beijing has been targeting to gain complete control over global supply chain of semiconductor, claims British industry experts
After the China backed semiconductor manufacturer Nexperia proclaimed to acquire UK’s largest semiconductor firm Newport Wafer Fab (NWF), incumbent Prime Minister Boris Johnson stated that the acquisition will be under review by the government authorities.
Nexperia, which is spearheaded by China’s Wingtech is massively criticized by the British political MPs for apparently consenting to the purchase deal. The decision is probably undertaken for security concerns after China appeared under the suspect list for the deliberate spread of COVID-19 infections. Several countries like Australia, U.S. under Trump administration, and India had taken strict actions against China with several app and IT Company bans.
Officially, the deal is yet to be finalized, but experts’ feels that this acquisition would empower China to control vast volume of Britain’s electronic production. Earlier, it was reported by Sydney Morning Herald that an agreement of US$116 million was signed between the two firms.
Prime Minister Johnson said, “It was a difficult process. I do not want an anti-China spirit to lead to us trying to pitchfork away every investment from China into this country. This would be economically foolhardy”. A huge geopolitical imperativeness has been gained by the semiconductor sector because the key technology has been targeted by China for the upcoming economy.
For a long time, Beijing has been targeting to gain complete control over global supply chain of semiconductor as any silicon-based products are considered to be the mother of all electronic equipments.
The Guardian’s exclusive report mentioned that the British Prime Minister while conversing with MPs on parliament’s liaison committee said “I think semiconductors are of huge importance to this country, and one of the things I wanted to look at immediately when I became prime minister was whether or not we could become more self-reliant. We have to judge that the stuff that they are making is of real intellectual property value and interest to China, whether there are real security implications.”