"US Employs 'Diplomatic Measures' in Contract for Chinese Firm's Acquisition of UK Semiconductor Company"

[Asia Economy New York=Special Correspondent Joselgina] Reports have emerged that the U.S. government used diplomatic means to thwart a Chinese company's attempt to acquire a British semiconductor company.

The Wall Street Journal (WSJ) reported on the 3rd (local time) that a U.S. diplomat stationed in London recently met with British government officials and stated that it would benefit the British economy if the semiconductor company targeted by China for acquisition remained a British company.

Chinese company Wingtech Technology signed a contract last July to acquire Newport Wafer Fab, the largest microchip factory in the UK, through its Dutch subsidiary Nexperia, but there has been ongoing controversy over transferring a factory with semiconductor production capabilities to China.

In response, the U.S. government directly explained its position regarding the semiconductor company contract to the British government, and it is reported that the British government, which had previously shown little reaction, changed its stance. Although the U.S. government did not directly request the cancellation of the contract, it emphasized that canceling the contract would be in the interest of both countries.

The British government began a 'national security assessment' last week regarding the sale of Newport Wafer Fab. If the review concludes that the contract could negatively impact UK security, the contract may be canceled.

This content was produced with the assistance of AI translation services.