£250m to turbocharge Welsh compound semi cluster
Wales is set to benefit from a £250million investment from the semiconductor company Vishay Intertechnology, that will be vital to the production of electric vehicles, supporting the UK government’s Plan for Change in delivering more skilled jobs, and turbocharging the economy.
The Chancellor Rachel Reeves will welcome Vishay Intertechnology’s intention to invest on a visit to the Newport plant - the UK’s largest semiconductor facility - as part of plans to develop large-scale compound semiconductor manufacturing in the country.
The investment will boost production at the factory where it will make advanced SiC semiconductors. Vishay’s investment is expected to directly support over 500 high value, high skilled jobs in the region and indirectly support hundreds more in the wider supply chain.
It comes after the Chancellor Rachel Reeves' Spring Statement where she vowed to bring about “new era of security and national renewal” to kickstart economic growth, protect working people and keep Britain safe.
Supported by the government’s Automotive Transformation Fund (ATF), the investment will help secure domestic supplies of semiconductors critical to the UK automotive industry, and other key industries including renewable energy and defence. It also strengthens the UK’s position in a competitive, global semiconductor landscape, supporting long-term growth for our economy.
Through the ATF, delivered in partnership with the Advanced Propulsion Centre (APC), the government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology. To date, the ATF and APC funding programmes have leveraged over £6bn of investment from the private sector.
The Autumn Budget confirmed over £2 billion for capital and R&D funding over five years for zero emission vehicle manufacturing and their supply chains. Mike Hawes, SMMT (Society of Motor Manufacturers and Traders) CEO, said: “This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK Automotive. British-made next-generation semiconductors will create jobs, support supply chains and enhance the UK’s strategic capabilities. ”
Secretary of State for Wales Jo Stevens said: "This massive investment by Vishay and the UK Government is a huge boost for Wales's world-leading semiconductor industry. Earlier this month I was at Vishay to see the work they do on advanced manufacturing, renewable energy and defence industries – all key sectors in the Welsh economy."
Wyn Meredith, chair of CSconnected, the Welsh Semiconductor Cluster said: "Since the launching the Welsh Semiconductor Cluster in 2015, our partners have invested heavily in creating a world-leading research and innovation ecosystem, with a highly skilled talent pipeline to address a semiconductor market opportunity which is set to surpass $1Trillion per annum by 2030. Global semiconductor players like KLA, Microchip, IQE, Vishay, and recently announced Cadence, have recognised the value of our proposition and have committed in excess of £600m investment to fuel the continued growth of semiconductor manufacturing in South Wales."
Roy Shoshani, COO Semiconductors and CTO for Vishay, said: “This is an exciting moment, and the start of our plans for growth in the UK. We can see through the development of the Industrial Strategy and the skilled workforce in Newport that there is a real opportunity to play to the UK’s strength in advanced semiconductors, delivering greater economic security and supporting Net Zero.”
