British government buys fab plant to secure military supply chain

What just happened? The UK's new Labour government appears to be placing more importance on securing critical semiconductor supplies necessary for defense with its recent acquisition of a fab plant. Whether this attitude will also lead to a more complicated approval process for foreign-based acquisitions that have national security implications is hard to say. But by nationalizing a semiconductor plant, it is clearly signaling it is willing to intervene more proactively in these industries.

The UK Ministry of Defence (MoD) has acquired a fabrication plant to secure supplies of gallium arsenide (GaAs) semiconductors needed by the armed forces.

The site at Newton Aycliffe, County Durham in northeast England, was previously owned by US manufacturer Coherent and has been described by the ruling Labour Party as the only secure facility in the country with the ability to manufacture gallium arsenide components.

The deal suggests that the UK will be taking ...