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MoD to put £200m into UK compound semi fab

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Investment in County Durham fab will be used to make GaAs and GaN chips for military systems and power electronics

The UK's MoD will put a further £200 million into Octric Semiconductors, the re-named GaAs fab in Newton Aycliffe, County Durham which the MoD bought in September 2024 for £27 million.

According to a report in Electronics Weekly, the investment will be used to produce GaAs and GaN chips for military systems, radars and power electronics. Octric aims to expand with further processes: it is looking for engineers with experience in a range of compound semiconductors including InP.

Most recently owned by US company Coherent, the UK fab was bought by the MoD as a crucial supply chain to UK defence. The site is said to be the only secure facility in the UK with the skills and capability to manufacture GaAs semiconductors, vital for a number of military platforms, including to boost fighter jet capabilities.

The MoD says it is open to offers to share ownership of the fab.

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