A special congressional task force aimed at countering threats from China is calling on the Biden administration to block the proposed sale of Britain’s largest microchip factory to a Chinese company, a firm that US lawmakers say has close ties to the ruling Communist Party in Beijing.
In a letter to President Biden this week, the Republican-led China Task Force warned of security risks tied to the proposed takeover of Newport Wafer Fab (NWF) — a key player in Britain’s semiconductor industry — by Nexperia, a Dutch-based semiconductor maker which was bought by China-based Wingtech Technology. The U.S. lawmakers described the new parent company as essentially a “state-owned enterprise” of the People’s Republic of China (PRC).
The April 19 letter was signed by China Task Force Chairman Rep. Michael McCaul, Texas Republican, along with House GOP Rep. Mike Gallagher of Wisconsin, Michael Waltz of Florida, Guy Reschenthaler of Pennsylvania, Robert J. Wittman of Virginia, Neal Dunn of Florida, Mark Green and Diana Harshbarger of Tennessee, and Young Kim of California.
“This matter requires urgent action,” the lawmakers wrote. “We urge your administration to employ all tools necessary to prevent this outcome, including engaging in direct diplomacy with the UK government, reconsidering the UK’s status on the Committee on Foreign Investment in the United States (CFIUS) ‘white list,’ and restricting exports to NWF.”
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