Commons Sense

House of Commons · Ministerial Statement

Newport Wafer Fab Sale

15 July 2021 · 13 other contributors

Opened by Amanda Solloway Con Braintree

BrexitBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Amanda Solloway raised concerns about newport wafer fab sale in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Government recognises Newport Wafer Fab's value to the south Wales compound semiconductor cluster
  • Government committed to semiconductor sector's role in UK's economy
  • Enterprise Act 2002 and National Security and Investment Act 2021 provide powers for government intervention if national security concerns arise

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Amanda Solloway

The Government recognise the value and contribution of Newport Wafer Fab to the south Wales compound semiconductor cluster. They are committed to the semiconductor sector's role in the UK’s economy, acknowledging support from the Welsh Government due to economic devolution. The Enterprise Act 2002 and the forthcoming National Security and Investment Act 2021 give the government powers to intervene if national security concerns arise, but at present, commercial transactions are primarily a matter for parties involved. The Prime Minister has asked the National Security Adviser to review this case, while monitoring the situation closely.

Other contributors (13)
  • Chi Onwurah Lab Newcastle upon Tyne Central and West

    Question

    Congratulates the hon. Member for securing the urgent question, highlighting Newport Wafer Fab's importance to British innovation and employment, as well as its strategic economic significance given global competition in semiconductor development. Questions how the Minister will ensure protection of this asset and whether she will use NSI Act powers to scrutinise the takeover.

    Minister reply

    Reaffirms the UK’s mature relationship with China based on mutual respect while maintaining values and security, noting that national security concerns will be addressed where necessary. The NSI Act provides legislative power for case-by-case consideration of acquisitions.

  • Thomas Tugendhat Con Tonbridge

    Question

    Questions the National Security and Investment Act 2021, highlighting Newport Wafer Fab's role in defence-related projects. Urges the Minister to commit to presenting the National Security Adviser’s report to Parliament.

    Minister reply

    Acknowledges the work on the Act which focuses on acquisitions of control over qualifying and entitled assets. Reiterates that where concerns arise, intervention will be made but avoids commenting further due to commercial sensitivities.

  • Stephen Flynn SNP Aberdeen South

    Question

    Critiques the delay in using NSI Act powers and questions why it took a Select Committee chair's intervention for the Prime Minister to take this matter seriously. Asks if the Act is robust enough.

    Minister reply

    States that the government reviewed the transaction but does not consider current intervention necessary, with the National Security Adviser reviewing the case.

  • Angela Richardson Con Sleaford and North Hykeham

    Question

    Asks about the steps the Government are taking to strengthen their powers in relation to hostile investment, particularly regarding semiconductors.

    Minister reply

    The Government amended the Enterprise Act 2002 in 2020 and overhauled the investment screening system through the National Security and Investment Act. The NSI Act allows intervention in acquisitions posing national security risks.

  • Ruth Jones Lab Newport West

    Question

    Asks for a meeting to discuss Newport Wafer Fab’s sale, its strategic importance, and job security.

    Minister reply

    The Government have reviewed the transaction but do not consider intervention necessary at this time. The Minister is willing to meet Ruth Jones or facilitate a discussion with relevant officials.

  • Kevin Hollinrake Con Thirsk and Malton

    Question

    Emphasises the importance of protecting jobs, the semiconductor plant, and intellectual property.

    Minister reply

    The Government have invested £800 million in compound semiconductor research. There is a compound semiconductor applications catapult with over £50 million of funding, initiating projects worth more than £100 million.

  • Barry Sheerman Ind Huddersfield

    Question

    Highlights previous takeovers by Chinese entities and asks for an audit on the extent of such takeovers.

    Minister reply

    The Government have legislative powers, including the National Security and Investment Act 2021, to protect infrastructure and critical services. The NSI Act allows scrutiny and intervention in acquisitions posing national security risks.

  • Bob Blackman Con Harrow East

    Question

    Requests a commitment from the Government to return to the House with a final decision on national security issues.

    Minister reply

    The UK will engage positively but critically with China, upholding values and security. The National Security and Investment Act is designed to protect against adverse practices while not being discriminatory.

  • Janet Daby Lab Lewisham East

    Question

    Questions the Government's approach to Chinese investment and seeks plans to ensure pension funds do not invest in companies linked to Uyghur abuses.

    Minister reply

    The UK has imposed sanctions on perpetrators of human rights violations against Uyghurs, as announced by the Foreign Secretary.

  • John Howell Con Henley

    Question

    Inquires about Chinese promises for efficiency improvements in Wales and asks if an impact assessment was conducted.

    Minister reply

    The Government have reviewed the transaction but do not consider intervention necessary at this time. The Prime Minister has asked the National Security Adviser to review it.

  • Peter Bone Con Wellingborough

    Question

    Asks if an impact assessment was conducted and whether it is available.

    Minister reply

    The Government have reviewed the transaction but do not consider intervention necessary at this time. No information about a published impact assessment is currently available.

  • Iain Duncan Smith Con Chingford and Woodford Green

    Question

    Congratulates his hon. Friend on the question and criticises the Government for failing to make a clear decision regarding the strategic importance of semiconductors. Points out China's aggressive approach in acquiring semiconductor technology globally, questioning whether the UK is now beholden to China in business dealings despite security risks. Asks if the deal should have been blocked under the Act.

    Minister reply

    Reiterates that the Government has thoroughly reviewed the transaction and does not consider intervention necessary at this time. The Prime Minister instructed the National Security Adviser to review the matter, and the Government is committed to supporting the semiconductor sector by reviewing the wider landscape in the UK.

Shadow Comment

Chi Onwurah

Chi Onwurah welcomes investment in Newport Wafer Fab but argues for a national security assessment due to its strategic economic importance. She questions the government's willingness to use new powers established by the NSI Act, highlighting past instances of outsourcing British interests to market zeal over security, such as with Huawei in 2012. Labour calls for strengthening public interest and national security test regimes.

▸ Assessment & feedback
Summary accuracy