Chinese Consortium Forced to Sell U.K. Chipmaker FTDI in National Security Crackdown
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FTDI, founded in 1992 in Glasgow, is a global leader in USB bridge chips with a market share of around 20%. Photo: VCG
The U.K. government has ordered a Chinese private equity consortium to sell its controlling stake in chipmaker Future Technology Devices International Ltd. (FTDI) by Feb. 7, unwinding a completed deal on national security grounds three years after it closed.
Beijing Jianguang Asset Management Co. Ltd. (JAC Capital) led the group that finalized the $414 million acquisition of 80.2% of FTDI in December 2021. However, in November 2024, London invoked the National Security and Investment Act (NSI Act) to mandate the divestment, creating a forced exit for the Chinese investors.
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- The UK ordered a Chinese consortium to sell its 80.2% stake in chipmaker FTDI by February 2027, citing national security under the NSI Act.
- The $414 million deal, completed in 2021, faced retroactive review; FTDI's revenue dropped from $90 million in 2023 due to market uncertainty.
- Legal challenges by the consortium failed, mirroring prior UK actions against Chinese tech acquisitions like Nexperia’s Newport Wafer Fab.
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Who’s Who
- Beijing Jianguang Asset Management Co.Ltd.
- Beijing Jianguang Asset Management Co.Ltd. (JAC Capital) led a Chinese private equity consortium that acquired an 80.2% stake in chipmaker Future Technology Devices International Ltd. (FTDI) in December 2021. The U.K. government has since ordered the consortium to sell its stake by February 7, 2025, citing national security concerns. This forced sale has been challenging, with the company's performance declining and legal attempts to contest the order failing.
- Future Technology Devices International Ltd.
- Future Technology Devices International Ltd. (FTDI) is a UK-registered chipmaker founded in 1992, with operational headquarters in Singapore. It specializes in USB bridge chips, holding around 20% of the global market. In 2021, a Chinese consortium led by JAC Capital acquired a controlling stake. However, the UK government mandated its divestment by February 2025 citing national security concerns.
- Electra Technologies Co.Ltd.
- Shenzhen-listed Electra Technologies Co.Ltd. ("深圳市得润电子股份有限公司" in Chinese) was part of the Chinese private equity consortium that acquired an 80.2% stake in the chipmaker Future Technology Devices International Ltd. (FTDI) for $414 million in December 2021. The consortium aimed to address a gap in China's high-end interface chip market through this acquisition.
- Nexperia
- Nexperia is the Dutch subsidiary of Chinese smartphone maker Wingtech Technology Co. Ltd. In November 2022, the U.K. government leveraged the National Security and Investment Act to force Nexperia to divest its controlling stake in Newport Wafer Fab. This facility was subsequently sold to U.S.-based Vishay. Furthermore, in September 2025, the Dutch government cited economic security concerns, restricting Nexperia's control over its own assets. This action led to the suspension of Wingtech founder Zhang Xuezheng from his role at the company.
- Wingtech Technology Co.Ltd.
- Wingtech Technology Co. Ltd. is a Chinese smartphone maker whose Dutch subsidiary, Nexperia, was forced by the U.K. government in November 2022 to sell its controlling stake in Newport Wafer Fab due to national security concerns. More recently, in September 2025, the Dutch government restricted Nexperia's control over its own assets.
- Vishay
- The article mentions Vishay as the buyer of Newport Wafer Fab, a company that the UK government forced the Chinese-owned Nexperia to sell. This occurred in a similar situation to the forced sale of FTDI, highlighting a trend of Western governments using national security laws to scrutinize Chinese investments in technology.
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What Happened When
- December 2021：
- JAC Capital-led consortium finalized the $414 million acquisition of 80.2% of FTDI.
- January 2022：
- NSI Act took effect in the U.K., allowing government reviews of deals dating back to November 2020.
- November 2022：
- U.K. government forced Nexperia to sell its controlling stake in Newport Wafer Fab under the NSI Act.
- November 2023：
- U.K. authorities launched a probe into the FTDI deal.
- November 5, 2024：
- U.K. government issued a final order for the Chinese consortium to divest from FTDI, citing national security.
- February 2025：
- London High Court rejected Chinese consortium's application for judicial review and interim relief.
- September 2025：
- Dutch government restricted Nexperia’s control over its assets, leading to the suspension of Wingtech founder Zhang Xuezheng.
- November 2025：
- Initial government-set deadline for the sale; later extended.
- By February 7, 2026：
- Final deadline for the Chinese consortium to sell its controlling stake in FTDI, as extended by the U.K. government.
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