The government said Nexperia must reduce its stake in Newport Wafer Fab by 86%, back to its previous holding of just 14% when it took over the company in 2021, in a bid to “mitigate the risk to national security”. Nexperia responded to the announcement with shock and dismay, saying it does not accept the state’s reasoning and 500 jobs are now at risk. “The extensive remedies offered by Nexperia to fully address the government’s concerns have been completely ignored,” the company said in a statement. “The UK Government has chosen not to engage in meaningful dialogue with Nexperia or even visit the Newport site. “More than 500 workers in Newport have also raised their own significant concerns about such a divestment – the government has chosen not to listen to them and has instead taken this decision which puts the livelihoods of them and their families and more than £100 million of taxpayers’ money, completely needlessly at risk.” The company said it would contest the order in a bid to save the plant and jobs. The takeover of the Newport Wafer Fab had been investigated by the government on national security grounds. The factory has for decades been a critical site where tiny silicon chips are produced. There is currently a global shortage of semiconductors that go into cars and everyday electronics. The investigation was conducted under the new National Security and Investment Act, which gives the government power to intervene retroactively in an agreement. Nexperia had already completed the purchase of Newport Wafer Fab for £63m. Safety concerns were raised by both the industry and MPs. Wednesday’s statement from the Department for Business Energy and Industrial Strategy identified security concerns, saying the potential development of compound semiconductors in Newport could “undermine the UK’s capabilities”. Ciaran Martin, former chief executive of the National Cyber ​​Security Centre, described the takeover as a bigger threat to British interests than Chinese firm Huawei’s involvement in the 5G network. The former chairman of the Commons Foreign Affairs Committee, Tom Tugendhat, had expressed concern that companies, particularly in China, had a history of using foreign investment to gain access to important technologies and information. The announcement of the results of the investigation is constantly delayed. The original deadline for a decision was due in June, but BEIS has asked for 45 days to make its decision. It was beset by further delays as the Tory leadership contest continued over the summer and the government played musical chairs after the departure of former chancellor Kwasi Kwarteng and then former prime minister Liz Truss. The extended September and October deadlines passed without a decision. What happens next is unclear. The Financial Times reported that previous owner Nelson hopes to acquire the company. Under the terms of the Nexperia buyout, Nelson has the first opportunity to buy it back. Nexperia has consistently stated that it and its parent company Wingtech are separate from the Chinese state.