The UK’s largest chip producer, Newport Wafer Fab, is set to be acquired by Chinese-owned semiconductor company Nexperia for around US$87 million.

Nexperia, a Dutch firm 100 percent owned by China’s Wingtech Technology, told CNBC that the deal talks are ongoing. Located in Newport, South Wales, privately held NWF’s chip plant dates back to 1982 and it is one of just a handful of semiconductor fabricators in the UK

Nexperia is set to announce the takeover as soon as this week. The potential deal has raised concerns throughout the British tech sector which has raised concerns with Westminster.