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Newport Wafer Fab Sale
15 July 2021
Lead MP
Amanda Solloway
Debate Type
Ministerial Statement
Tags
WalesScience & TechnologyBusiness & Trade
Other Contributors: 13
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.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
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.
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.
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.
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
Shadow Comment
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.
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