A VITAL manufacturing sector with a major presence in Newport could be under threat from increased overseas competition, fuelling national security concerns.

Chinese efforts to "assert dominance" globally could impact on the availability of semiconductors - vital electronics components used in civilian and military technology - a group of MPs has warned.

Warnings have been sounded over the sale of Newport-based microchip manufacturers Waferfab to a firm said to be linked to the Chinese government.

Semiconductor production is currently "scarce" and has hit production of popular brands like the Mini and the Playstation 5 console. But their other use, in defence technology, means the UK is attempting to rectify any vulnerabilities in its own supply lines.

“Semiconductors are growing in technological and geopolitical importance, said MP Darren Jones, who chairs parliament's business committee. "With scarce global supply, it’s essential that we conduct a stock take of the UK’s capacity and what government can do to raise it."

The committee has now opened an inquiry into the nation's semiconductor industry and what can be done to strengthen it.

"We want to hear from industry, academics and experts to get a better picture of the UK semiconductor landscape here at a time when there are concerns over the future of global supply chains," Mr Jones added.

The inquiry comes after UK ministers launched a "full national security assessment" of the takeover of Wafer Fab by a Chinese-owned firm.

Under the terms of the legislation, ministers have the power to scrutinise and, if necessary, intervene in the acquisition on national security grounds.

The committee has labelled the Wafer Fab deal as "controversial" and fears the UK's progress in the sector could be hit if Chinese firm Nexperia "acquire[s] cutting-edge British compound semiconductor designs".

Evidence can be submitted to the parliamentary inquiry online at committees.parliament.uk/work/6724/the-semiconductor-industry-in-the-uk/