Chinese tech companies have been criticized by international security over the revelations that the Beijing government is in deep ties with China’s tech companies. Most countries have boycotted the tech companies from China, and even the blooming 5G business of Huawei has been hit due to the rising scrutiny against china’s internal and external policies.
However, recent news coming from mainland China has sent shock waves across the tech market. According to sources, a Chinese company is all set to buy Newport Wafer Fab, UK’s top microchip maker, in a deal worth 63 million pounds. The news has come as a huge surprise, and many in the tech industry and the security department have asked the UK ministers to intervene and pause the acquisition over national security concerns.
Nexperia – owned by China’s Wingtech – has reportedly agreed to buy Newport Wafer Fab located in South Wales and a firm responsible for making several key power components used in vehicles. Currently, the world is facing the biggest semiconductor shortage ever. A Chinese tech company’s acquisition of the UK’s chip maker will only cause large ramifications across the tech world.
However, people concerned about the deal have said that even if they manage to ignore the effects, it will have on the Automobile industry. Still, the question of national security cannot be dismissed. They argue that while Nexperia may be based out of The Netherlands, it is owned by China’s Wingtech. And the parent company of Nexperia has investors from the state.
Politicians like Tom Tugendhat have highlighted that the UK cannot turn a blind eye to this as it is about a country (China) that has used technology for geopolitical leverage, and the argument stands strong. China has often been criticized for using a back door in its country’s information devices to gather data from countries like the US and UK.
This acquisition has been met with severe scrutiny because microchips are used from vehicles to TVs, phones, and even the smallest of wearable devices. And you don’t want to wear a device that uses chips manufactured by a company with Chinese investors.
