China wants to dominate semiconductors
China wants to dominate semiconductors

A UK lawmaker believes China is using questionable methods to ensure it becomes a world leader in semiconductor technology.

Former MP and Conservative Party leader Ian Duncan Smith told Britain's parliament that China has identified semiconductor technology as a key area in which it hopes to dominate the world.

Taiwan, South Korea and the United States currently dominate the industry. Chip manufacturers TSMC, Samsung and Intel are located here.

Duncan Smith said China is busy stealing technology, acquiring others' intellectual property rights, and taking over companies.

The Chinese Foreign Ministry has disputed allegations by the United States and other Chinese allies of industrial espionage activities.

Earlier this year, China imposed sanctions on some British organizations and individuals, including Duncan Smith, who is highly critical of China.

These chips are used to power everything from parking sensors in cars to advanced missile systems. But this is now rare, and countries are taking steps to make sure they have enough.

On July 5, China's Nexperia confirmed its intention to acquire Newport Wafer Fab, the UK's largest chip maker.

Newport Wafer Fab manufactures printed circuit chips. Although Nexperia is headquartered in the Netherlands, it is owned by the Chinese company Wingtech.

The analysis shows that several other European chip companies, including Imagination Technologies in the UK, Linxens in France, and Ampleon in the Netherlands, have been sold to Chinese companies in recent years with government support.

China wants to dominate semiconductors

The UK government initially said it did not want to interfere with the acquisition of the Newport plant. However, British Prime Minister Boris Johnson said the National Security Adviser was reviewing the deal.

During the review, British Trade Secretary Amanda Solvay stressed that the government had no plans to intervene at the moment because it was not a national security issue at the moment.

In April, a new law called the National Security and Investment Act was passed. Duncan Smith believed that the government should use the law to prevent the takeover of the Newport plant.

Over the past decade, the UK has sold many of its most innovative companies to overseas buyers.

Google acquired DeepMind, the world's leading artificial intelligence lab, in 2014. Japanese firm SoftBank acquired British chip designer Arm in 2016.

SoftBank is now selling Arm to Nvidia for $40 billion. Even competition regulators around the world are investigating the deal.

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