The UK government will review the sale of Britain's biggest microchip factory to China.

Kwasi Kwarteng, Business Secretary, will conduct a national security assessment regarding the Nexperia takeover Newport's Wafer Fab.

The company could be forced to reduce its shareholding to 14%, as it did originally.

MPs have criticised the UK government in the past over this case.

According to a report from April, an investigation promised by Boris Johnson the Prime Minister by the National Security Advisor hadn't taken place.

Newport Wafer Fab is a microchip company headquartered in the west end of the city. It employs approximately 450 people.

Wednesday's announcement by Mr Kwarteng was that there would be a full assessment of the acquisition as per the National Security and Investment Act.

He tweeted that "We welcome overseas investments, but they must not threaten Britain’s national security."

Boris Johnson, Prime Minister of the United Kingdom, stated last year that he didn't want to see Chinese investment leave Britain due to "anti-China spirit".

The government has 30 days to complete its assessment, and has the power to interfere, even retrospectively, in national security acquisitions.

The deal is being scrutinized amid a global shortage of computer chips, which has been made worse by the pandemic.

They are an important strategic asset because of their importance in modern manufacturing.