American semiconductor company Vishay Intertechnology has acquired the UK's largest chipmaking facility, Newport Wafer Fab, for $177 million. Located in South Wales, Newport Wafer Fab

produces semiconductors used in various electronic products, including smartphones and automobiles. The facility was put up for sale earlier this year when the UK government required the Chinese-owned company Nexperia to divest its control of the plant due to national security concerns.

Vishay's President and CEO, Joel Smejkal, emphasized their commitment to safeguarding the skilled and dedicated employees and ensuring the facility becomes fully operational and profitable. The acquisition aligns with Vishay's capacity expansion plans for customers in the automotive and industrial markets, as well as the UK's strategic goal of enhancing supply chain resilience.

The decision to sell Newport Wafer Fab came after concerns regarding the acquisition of the facility by Nexperia were raised, leading to a full national security assessment. The UK government chose to intervene and ordered Nexperia to sell the plant. Nexperia had expressed its disappointment, citing a lack of meaningful dialogue with the UK government.

Vishay, a prominent semiconductor manufacturer in the US, supplies semiconductors and passive electronic components for various industries, including automotive, military, aerospace, and medical markets. The Welsh Government welcomed Vishay's commitment to grow the workforce and invest in the Newport facility, aiming to end the period of uncertainty and align with the UK Semiconductor Strategy.  Photo by © Raimond Spekking / CC BY-SA 4.0 (via Wikimedia Commons).