Newport Wafer Fab

1. Questions to the First Minister – in the Senedd on 22 November 2022.

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Photo of Jayne Bryant Jayne Bryant Labour

(Translated)

1. What assessment has the First Minister made of the impact of the UK Government's decision to block the acquisition of Newport Wafer Fab by Nexperia BV? OQ58769

Photo of Lesley Griffiths Lesley Griffiths Labour 1:30, 22 November 2022

Thank you. Welsh Government welcomes the fact that the announcement has finally been made, which has provided some welcome clarity. The semiconductor cluster is vital to the Welsh economy, and we call again on the UK Government to publish its semiconductor strategy and invest in this significantly important sector as a matter of urgency.

Photo of Jayne Bryant Jayne Bryant Labour

Thank you for that answer, Minister. The decision by the UK Government to stop the takeover by Nexperia due to national security issues understandably grabbed the headlines. However, what is being missed is the effect that this announcement has on the 500-plus strong, highly skilled and dedicated workforce. You'll know that, over the years, in different incarnations, the workforce have faced much uncertainty about the future of the site. The promise of Nexperia offers stability with further investment. The jobs are high-tech and, in recent times, well paid. What role has the Welsh Government had in that decision, and what discussions has the Welsh Government had with the UK Government following that decision? And can the Minister assure me, my constituents and the workforce from across the region that the Welsh Government will do all it can to ensure that these cutting-edge jobs, which are of national significance, are safeguarded?

Photo of Lesley Griffiths Lesley Griffiths Labour 1:31, 22 November 2022

Thank you. So, Newport boasts a globally significant semiconductor cluster, and the UK Government does have a responsibility to ensure that it's not held back as a result of this episode. And I know Jayne Bryant has always stood up for this very crucial sector in her constituency, and we're ambitious about the role it can play. I think the Biden administration really put a huge priority on this sector too, and I think there are many people who are very rightly frustrated at the UK Government's failure to prioritise the sector here in the UK. The Minister for Economy recently worked with KLA to unlock a major new investment in the cluster. That will support 750 new jobs in Newport, which further underscores the Welsh Government's commitment. And the Minister for Economy has written to Grant Shapps, the Secretary of State for Business, Energy and Industrial Strategy, seeking an urgent meeting. As a Government, we don't have the expertise to assess the security issues at stake, but a UK semiconductor strategy should now be in place to provide a framework for decision making, with certainty for all levels of Government. 

Photo of Natasha Asghar Natasha Asghar Conservative 1:32, 22 November 2022

I'd like to thank my colleague Jayne Bryant for raising this question. Minister, the decision of the UK Government to block the acquisition of the Newport Wafer Fab by Nexperia for reasons of national security has obviously caused great concern amongst the workforce about the safety of their jobs and the future of the company, which my colleague just mentioned. Judgment on issues of national security still remain with Ministers at Westminster, and rightly so. However, last Thursday, I, alongside the Minister for Economy, as you mentioned, wrote to the Secretary of State for business, Grant Shapps, asking for clarification of the Government's position and seeking to guarantee that he will do all that he can, in conjunction with the Welsh Government, to protect the jobs of the workforce. Will you, Minister, commit to cohesively work with the UK Government to support the workforce at Newport Wafer Fab to safeguard the future of the company, because Newport cannot afford to lose highly skilled, well-paid jobs in companies like this, going forward?

Photo of Lesley Griffiths Lesley Griffiths Labour 1:33, 22 November 2022

Absolutely, and you will have heard my initial answer to Jayne Bryant. And, as I mentioned, the Minister for Economy has written to the BEIS Secretary of State to seek an urgent meeting. I think that letter only went either yesterday or today. So, I would hope—and if you've got any influence—and I would suggest it is an urgent meeting to discuss this, going forward. I said in my original answer that we've been waiting a long time for a response from the UK Government, and we're very pleased that they now seem to have a bit of urgency around this matter. 

Photo of Rhianon Passmore Rhianon Passmore Labour 1:34, 22 November 2022

Minister, I have also been contacted by Islwyn constituents who work for Nexperia, who are very deeply concerned about their job security following the decision of the UK Government. In a letter to the UK Government's business secretary, Grant Shapps, the Nexperia staff association stated that the UK Government had cast a dark cloud over south Wales. Minister, tomorrow, the staff association will travel to Westminster with Ruth Jones, Member of Parliament for Newport West, to present those concerns. So, what can the Welsh Government do to safeguard the cutting-edge cluster of semiconductor companies in the Gwent region, so vital to the south-east Wales economy? Are there plans to seek urgent face-to-face talks with UK Government counterparts to quickly agree a way forward and ensure that not a single highly skilled job is jeopardised? Also, would you and the economy Minister be willing to meet with me and other Gwent colleagues to address our constituents' serious concerns?

Photo of Lesley Griffiths Lesley Griffiths Labour 1:35, 22 November 2022

So, as I've already mentioned, the Minister for Economy has written, asking for a face-to-face meeting with the BEIS Secretary of State, and I'm sure, once he's had that urgent meeting, he'll update local Members on the latest developments on this very important issue. I think one of the best things the Welsh Government can do is to continue to really put some pressure on the UK Government to publish its semiconductor strategy urgently, because we know that would then not only secure jobs that we're talking about now, in Newport West, but also attract more high-tech businesses into Wales, and also into the UK, for that matter.