Wales is poised for a significant economic transformation with a landmark £250m investment from Vishay Intertechnology, a global leader in semiconductor manufacturing.
This strategic investment will enhance the UK’s capabilities in semiconductor production, a critical component in the rapidly expanding electric vehicle (EV) industry.
The initiative is touted to foster innovation, create high-skilled jobs, and strengthen the nation’s position in the global semiconductor market.
Jo Stevens, Secretary of State for Wales, commented: “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.
“This investment will build on that success to create and support hundreds of highly skilled and well-paid jobs, driving economic growth in south Wales and beyond and helping us deliver our Plan for Change.”
Vishay Intertechnology expands in Newport
Chancellor Rachel Reeves is set to visit Vishay Intertechnology’s Newport facility today to officially welcome the company’s commitment to expanding semiconductor manufacturing in the UK.
As the country’s largest semiconductor facility, the Newport plant is strategically positioned to lead the development of large-scale compound semiconductor manufacturing.
This investment will significantly enhance production at the state-of-the-art factory, which will focus on producing advanced Silicon Carbide semiconductors.
These components play a crucial role in EV technology, enabling faster battery charging, improved energy efficiency, and extended driving ranges.
Commenting on the landmark investment, UK Business and Trade Secretary Jonathan Reynolds said: “This is a huge vote of confidence in the Welsh economy and our plans to make Britain the destination of choice for investments in the industries of tomorrow. It will support local skilled jobs and raise living standards, showing our Plan for Change is working.
“Vishay’s investment will help secure a domestic supply of semiconductors which are vital for our world-leading automotive sector and support our clean energy industries – key growth driving sectors 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, with hundreds more supported indirectly through the supply chain.
This initiative represents a significant step in securing domestic semiconductor supplies, which are critical to the UK’s automotive industry as well as key sectors like renewable energy and defence.
Government support through the ATF
The investment is backed 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 and locally sourced supply of semiconductors, the UK is bolstering its position in the highly competitive global semiconductor industry while fostering long-term economic growth.
The ATF, in collaboration with the Advanced Propulsion Centre (APC), has been instrumental in unlocking private investment in the UK’s automotive sector.
To date, the ATF and APC funding programmes have facilitated over £6bn in private-sector investment, 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 among G7 nations between 2010 and 2023.
This latest investment in semiconductor manufacturing reinforces the UK’s standing as a global leader in high-tech manufacturing.
In addition, the UK Government’s Autumn Budget has committed over £2bn in capital and research and development funding over the next five years for zero-emission vehicle manufacturing and its supply chain.
This long-term investment will build on the successes of ATF and APC initiatives, ensuring continued growth and innovation in the UK automotive industry.
Industry support
This major investment into semiconductor manufacturing has been welcomed by the UK’s automotive sector.
Mike Hawes, SMMT Chief Executive, 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.
“Digitisation and decarbonisation are at the heart of the transition taking place amongst UK automotive manufacturers, and this investment can support that transition, aided by a comprehensive industrial strategy to deliver the growth the sector and the economy needs.”
A bright future for semiconductor manufacturing in the UK
The expansion of semiconductor manufacturing in Wales marks a significant milestone for the UK’s industrial landscape.
By securing essential semiconductor supplies for EV production, fostering job creation, and attracting private investment, this initiative is set to propel the UK towards a greener, more technologically advanced future.
With strong government support and industry leadership, the UK is cementing its place as a global hub for semiconductor innovation and advanced manufacturing.
