British government blocks takeover of Welsh semiconductor producer

The decision will raise questions over the future of the jobs of 550 workers at the Newport site as well as those of the 1,000 people at a separate Nexperia facility in Stockport.

Versluijs said the decision was legally wrong and disproportionate given remedies proposed by the company for government concerns, such as a pledge not to create more sophisticated compound semiconductors.

Countries around the world have sought to bolster their domestic semiconductor industries, amid concerns over the reliance on manufacturers in Taiwan, which is claimed by China as its territory, and South Korea. The US plans to invest $52bn (£44bn) in its chips industry, while the EU has said it will invest ¤43bn (£38bn).

Kwasi Kwarteng, who was business secretary at the time before a chaotic 38-day stint as chancellor, ordered an investigation into the Nexperia takeover in May under the new National Security and Investment Act, which was introduced at the start of the year. The government delayed the final decision at the start of July, giving it until midnight on Wednesday.

Versluijs in July told MPs the company had no plans to move operations abroad.