Wales is undergoing significant economic transformation with a £250 million landmark investment from Vishay Intertechnology, a global leader in semiconductor manufacturing.
This strategic investment will enhance the UK’s capacity in semiconductor production, a key component of the rapidly expanding electric vehicle (EV) industry.
The initiative is touted to promote innovation, create high-level jobs and strengthen the nation’s position in the global semiconductor market.
Welsh Secretary of State Joe Stevens commented:
“Early this month I was at Vischey to see the work they do in the advanced manufacturing, renewable energy and defense industries.
“This investment will help create and support hundreds of highly skilled and highly paid jobs based on its success, fostering economic growth in South Wales and beyond, and helping to realize a plan for change.”
Vishay Intertechnology is expanding in Newport
Prime Minister Rachel Reeves will visit Vischey Intertech’s Newport facility to officially welcome the company’s commitment to expanding semiconductor manufacturing in the UK.
As the largest semiconductor facility in the country, the Newport plant is strategically located to lead the development of large-scale compound semiconductor manufacturing.
This investment will significantly enhance production in cutting-edge factories and focus on the production of advanced silicon carbide semiconductors.
These components play a key role in EV technology, which allows the battery to be charged faster, increases energy efficiency and expands operating range.
UK Business and Trade Secretary Jonathan Reynolds commented on landmark investments. “This is a huge vote of confidence in the Welsh economy and a plan to make the UK a destination for investment in industry tomorrow, supporting local skilled jobs and showing that the plan of change is working.
“Vishay’s investments will help to secure domestic supply of semiconductors, essential to the world’s leading automotive sector and support the clean energy industry. This is the key growth-enhancing sector identified in our upcoming industrial strategy.”
Job creation and economic growth
The expansion of semiconductor manufacturing in Wales is expected to generate over 500 high value, skilled jobs in the region, and hundreds are expected to be indirectly supported through the supply chain.
The initiative represents a critical step in ensuring domestic semiconductor supply, which is important for the UK automotive industry and key sectors such as renewable energy and defense.
Government support through the ATF
The investment is supported by the UK government’s Automotive Transformation Fund (ATF), a key component of the country’s industrial strategy to strengthen the domestic semiconductor supply chain.
By ensuring a stable supply of locally produced semiconductors, the UK is strengthening its position in the highly competitive global semiconductor industry, while promoting long-term economic growth.
The ATF, in partnership with the Advanced Propulsion Center (APC), helped unlock private investments in the UK’s automobile sector.
To date, ATF and APC funding programs have driven over £6 billion in private sector investments, accelerating the transition to zero-emission vehicle technology.
Strengthening the UK’s advanced manufacturing sector
The UK’s Advanced Manufacturing sector has experienced the fastest growth in manufacturing productivity per job in G7 countries between 2010 and 2023.
This latest investment in semiconductor manufacturing is strengthening the UK’s position as a global leader in high-tech manufacturing.
Additionally, the UK government’s fall budget has earned more than £2 billion in capital and research and development funds over the next five years, due to the production of zero-emission vehicles and its supply chain.
This long-term investment will be built on the success of the ATF and APC initiatives to ensure continuous growth and innovation in the UK automotive industry.
Industry support
This major investment in semiconductor manufacturing is welcomed by the UK automotive sector.
“We are pleased to announce that we are committed to providing a range of services and services to delivering the most innovative and affordable experience,” said Mike Hawes, CEO of SMMT. “This important investment in composite semiconductors is a significant contribution to the innovation and advanced technologies needed to drive the future of UK automobiles.
“Next-generation UK-made semiconductors will create jobs, support the supply chain and enhance UK strategic capabilities.
“Digitization and decarbonization are at the heart of a transition between UK automakers, and this investment can support a transition supported by a comprehensive industrial strategy to deliver the growth the sector and economy needs.”
A bright future for UK semiconductor manufacturing
The expansion of semiconductor manufacturing in Wales is a key milestone for the UK’s industrial landscape.
By securing essential semiconductor supplies for EV production, promoting job creation and attracting private investment, the initiative is set to drive the UK towards a greener, more technologically advanced future.
Strong government support and industry leadership cement the UK as a global hub for semiconductor innovation and advanced manufacturing.
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