U.S. Lobbies U.K. to Reconsider Chinese Chip Factory Deal



LONDON—A Chinese-owned company bought an obscure chip factory in Britain last year. After Washington made it clear it opposed the purchase, the U.K. initiated a probe that could unwind the deal.

Last week, U.K. Business Secretary Kwasi Kwarteng triggered a national-security review of the deal, in which a Dutch subsidiary of a Chinese chip maker bought a semiconductor factory in Wales last July. Behind the scenes, a diplomat from the U.S. Embassy in London told British officials in recent weeks that the factory—if back in British hands—could help the U.K. become a hub for making chips crucial to electric vehicles, according to people familiar with the conversations.

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