Nexperia argues that reversal of the Newport Wafer Fab acquisition would have devastating consequences for the facility, according to legal filings seen by The Telegraph. “Newport would be left with only a single remaining client, and no immediate pathway to return to profitability,” the filings say. “Nexperia’s forecasting in this scenario projects a cash flow deficit of more than 170 million pounds by the end of 2024.”
Citing national security concerns, the UK government retroactively blocked Nexperia’s acquisition of the fab in November last year. It didn’t engage with the chipmaker to discuss its concerns about the company’s Chinese owner. Nexperia is owned by Wingtech but insists that it operates independently from any Chinese influences.
Nexperia is fighting the blockade at the British High Court.