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Pressure is growing on ministers to force the sale of Nexperia’s microchip plant in Stockport, after senior politicians warned that the UK is exposing itself to national‑security risks by allowing Chinese ownership of the site.
The plant, located in Greater Manchester, is one of the UK’s largest chip manufacturing facilities and reported £192m in revenue last year.
Lawmakers say that leaving control in the hands of a company ultimately owned by a Chinese technology group leaves room for interference, access to industrial data, and leverage over a key part of Britain’s supply chain.
The latest call follows a move by the Dutch government, which used emergency powers this month to seize control of Nexperia’s headquarters in the Netherlands.
Dutch officials said there was a risk that China could restrict access to microchips and “pose a risk to Dutch and European economic security.”
They also removed the firm’s Chinese chief executive, Zhang Xuezheng, and stated that staff in China had been told they had the “right to refuse” orders from European leadership. This raised an alarm that the command of the company is fragmented across jurisdictions.
Politicians warn government to act
Sir Iain Duncan Smith, former Conservative Party leader, said the situation mirrors the 2023 case where Nexperia was forced to sell its semiconductor plant in Newport to Vistry following government intervention.
Iain argued the government must now take the same approach with Stockport. He said:
“The same rules should apply. I don’t understand why this hasn’t been resolved by the Government. The Government has got to wise up and start taking decisions that are in the best interest of Britain’s security. Security comes first. Defence of the realm is their first priority and yet they behave as though it’s their last.”
Nexperia has been owned since 2019 by Wingtech, a Chinese technology firm. Although Nexperia is headquartered in Nijmegen, the Netherlands, political figures say the chain of control points back to Chinese industrial and political influence.
The company also continues to operate a site in Hamburg, alongside the Stockport factory now under scrutiny.
Iain accused Labour of taking a softer stance toward China to avoid harming trade prospects. He said:
“The trouble is the Government is basically weak in this area. They’re very weak. Look at the fight we’ve had over the spy trials and their desire not to upset China. They’re desperate for a trade arrangement with China, but China is a threat to us, in every degree. It’s time that they faced up to this challenge. China poses the single greatest challenge to our freedoms that any country has done since the ending of the Cold War.”
Supply chain concerns hit UK carmakers
Bob Seely, former MP and author of The New Total War, also issued warnings. He said: “We have to be much wiser in our dealings with China’s communist leaders, especially when it comes to tech. We have got it wrong for well over a decade, and it’s getting worse under Labour. China is not really interested in investing, only selling, finding useful tech and dominating global supply chains. We kowtow for no good reason … making the world more dangerous in doing so.”
He added: “The CCP have us where they want us. Our foreign policy, Whitehall and Treasury establishment is supine and our bankrupt Labour Government so desperate for economic crumbs that – despite pledges to the contrary – we are abandoning our interests and values.”
Industry groups warn that Nexperia’s chips are used widely by European carmakers, meaning any ongoing disruption could spread into manufacturing. The Society of Motor Manufacturers and Traders cautioned last week: “If not resolved quickly this issue has the potential to severely disrupt vehicle production and market supply.”
A government spokesperson said: “We are monitoring the situation closely and remain in touch with Dutch counterparts regarding actions taken in relation to Nexperia. We are fully committed to supporting the UK’s semiconductor sector, which is why in the last few months alone, we have announced £75m for skills, innovation centres, and a dedicated UK Semiconductor Centre to strengthen the sector. We continue to monitor for any potential impacts on semiconductor supply chains for UK carmakers.”
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