Chinese electronics software giant Wingtech Technology announced on Monday night that its subsidiary, the Holland-based semiconductor company Nexperia, has signed an agreement to acquire the UK's largest chipmaker, Newport Wafer Fab (NWF).
The deal is still in the process of being implemented and some uncertainties remain, Wingtech said in a statement. Once the acquisition is finished, Wingtech will have 100 percent ownership of NWF via Nexperia.
Wingtech produces smartphone parts for Chinese companies such as Huawei and Xiaomi.
According to Wingtech, the cost of the deal is relatively small considering NWF's revenues and profits, so the acquisition won't have a big influence on the company's manufacturing or business operation.
Wingtech also said the deal does not need approval from Wingtech's board of directors or shareholders.
The acquisition comes amid a global chip shortage that has pushed many countries to seek independence in terms of semiconductors, and there are also concerns among some UK experts about so-called national security issues, particularly as China and the UK's relations have been thorny recently over issues like the pandemic and the national security law for Hong Kong. Last year, the UK also announced it would remove Huawei from its 5G network by 2027.
Wingtech's shares rose by 9.48 percent to 100.95 yuan ($15.63) on Monday.
The deal is still in the process of being implemented and some uncertainties remain, Wingtech said in a statement. Once the acquisition is finished, Wingtech will have 100 percent ownership of NWF via Nexperia.
Wingtech produces smartphone parts for Chinese companies such as Huawei and Xiaomi.
Employees work at a smartphone parts factory in Fuyang, East China’s Anhui Province. Photo: CFP
According to Wingtech, the cost of the deal is relatively small considering NWF's revenues and profits, so the acquisition won't have a big influence on the company's manufacturing or business operation.
Wingtech also said the deal does not need approval from Wingtech's board of directors or shareholders.
The acquisition comes amid a global chip shortage that has pushed many countries to seek independence in terms of semiconductors, and there are also concerns among some UK experts about so-called national security issues, particularly as China and the UK's relations have been thorny recently over issues like the pandemic and the national security law for Hong Kong. Last year, the UK also announced it would remove Huawei from its 5G network by 2027.
Wingtech's shares rose by 9.48 percent to 100.95 yuan ($15.63) on Monday.
