Float on cards for chipmaker after Britain blocks Chinese takeover

CALLS for Newport Wafer Fab to be floated on the London stock market mounted after the UK blocked its Chinese takeover over security concerns.

The future of the Welsh microchip maker hangs in the balance after the Government ordered Nexperia, which is based in the Netherlands and owned by China’s Wingtech Technology, to reduce its stake from 100pc to no more than its previous holding of 14pc. Ministers said the move was necessary to ‘mitigate the risk to national security’.

Options for Nexperia include floating Newport Wafer Fab in London or risk the company being snapped up by private equity or even nationalised.

A stock market float would boost Rishi Sunak and Jeremy Hunt’s plans to turn Britain into a global tech leader.

Russ Shaw, founder of Tech London Advocates, said the flotation of Newport Wafer would provide Nexperia with an easy option to divest the 86pc stake.

He said: ‘Nexperia could certainly look to get together a consortium of British fund managers and manufacturers for a float. That way Nexperia gets to keep its minority stake. Admittedly the process could be difficult in the market climate.’

Nexperia said it did not accept the national security concerns raised. Nexperia’s UK country manager, Toni Versluijs, said: ‘We are genuinely shocked. The decision is wrong, and we will appeal to overturn this divestment order.’