Chinese-owned Nexperia Faces Pressure Over Stockport Microchip Plant Amid Security Concerns

Ministers are under renewed pressure to force the sale of Nexperia’s microchip facility in Stockport, following robust warnings from senior political figures regarding the potential national security risks associated with Chinese ownership. The debate has intensified after the Dutch government executed emergency measures to seize control of Nexperia’s parent operation in the Netherlands, citing a threat to both Dutch and wider European economic security.

Nexperia, originally headquartered in Nijmegen and now owned by the Chinese tech conglomerate Wingtech since 2019, stands as a significant player in the British semiconductor sector. The company’s Manchester plant in Stockport remains one of the largest chip factories in the UK, having generated revenues of £192 million last year. Recent developments echo the 2023 forced sale of Nexperia’s Newport, Wales facility, highlighting mounting apprehension over technology transfer and corporate vulnerability.

Sir Iain Duncan Smith, former Conservative Party leader, questioned the government’s reluctance to act decisively. He argued that the Stockport facility should be subject to the same intervention as Newport, with national security placed ahead of trade interests. According to Smith, prioritising defence remains a government duty, especially in light of perceived threats to the UK’s strategic interests.

Supporters of tighter restrictions on Chinese involvement in UK industry draw attention to similar apprehensions in Europe. Dutch authorities pointed to “serious governance shortcomings” and the risk of disruption to critical technology supply. In a bold move, they removed Nexperia’s Chinese chief executive and asserted greater oversight over operations, underlining the company’s strategic importance in the regional technology ecosystem.

Industry voices have flagged potential ripple effects across the UK manufacturing sector. The Society of Motor Manufacturers and Traders cautioned that ongoing uncertainty around Nexperia might significantly disrupt vehicle production and market supply. This reflects the ubiquity of Nexperia’s chips in European car manufacturing—and the fragility of supply chains in the geopolitical context.

The UK government has stated it is closely monitoring the situation and maintaining contact with Dutch counterparts. Recent investments in the domestic semiconductor sector, including a £75 million allocation for skills and innovation, underscore efforts to insulate the British economy from external shocks. The debate continues over the balance between economic growth and firm protection of national interests.