Chancellor visits semiconductor site to welcome £250m investment

A new £250 million investment has been announced for the UK’s largest semiconductor facility, which will support hundreds of highly skilled jobs in Newport.

The investment from Vishay Intertechnology is a significant endorsement of the region’s industrial capabilities and will bolster the world’s first Compound Semiconductor Cluster in South Wales.

Chancellor Rachel Reeves visited Vishay Intertechnology’s Newport plant on March 27 to welcome the investment, which is part of a strategy to develop large-scale compound semiconductor manufacturing in the UK.

Rachel Reeves and Deputy FM Huw Irranca-Davies meet female engineers from Vishay Newport (Image: Supplied) Vishay Intertechnology’s investment will ramp up production at the Newport plant, allowing for the manufacture of advanced Silicon Carbide semiconductors, a crucial component in the production of electric vehicles (EVs).

The advanced technology not only supports faster battery charging times, but also enables a more efficient supply of energy to the motor, thus allowing longer driving distances.

The investment is expected to directly sustain over 500 high-value, high-skilled jobs in the region, while also indirectly supporting hundreds more in the wider supply chain.

The seven female engineers were all recently shortlisted for a UK wide Women in Tech award (Image: Supplied) Chancellor of the Exchequer Rachel Reeves, said: "Under this government, the UK is open for business.

"This is exactly the type of investment that will help us grow the economy, create highly-skilled jobs and boost opportunity for people across the country, as we deliver on our Plan for Change to get more money in working people’s pockets."

Staff presented the Chancellor with a specially engraved Wafer manufactured on site. The Fab makes 2 billion chips every year. (Image: Supplied) The investment, backed by the government’s Automotive Transformation Fund (ATF), 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 the global semiconductor landscape, supporting long-term economic growth.

Sam Evans, Director of Quality and External Affairs at Vishay Newport the Chancellor about the manufacturing process for advanced semiconductors  (Image: Supplied) 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."

The investment is a major boost for the UK as a global hub for advanced manufacturing, which has been the fastest-growing in manufacturing productivity per job in the G7 between 2010 and 2023.

Alan Lambie, Director of Facilities at Vishay Newport shows the Chancellor a map of their expansion plans unlocked with a £250m investment  (Image: Supplied) 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."

The government’s ATF, delivered in partnership with the Advanced Propulsion Centre (APC), 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 £6 billion of investment from the private sector.

This long-term commitment is a vote of confidence in the UK’s automotive industry, supporting investment and productivity growth across UK automotive.

First Minister of Wales, Eluned Morgan, said: “Compound semiconductors are small but vital bits of our everyday lives and Wales is leading the way in their production and manufacture.

 “I welcome the additional investment from the UK Government, which builds on the Welsh Government’s work over the last decade in supporting the growth of the semiconductor cluster. We are now reaping the rewards of our commitment, which we will continue to drive forward.”

Cllr Mary Ann Brocklesby, Leader, Monmouthshire Council, and Chair, Cardiff Capital Region said: “This significant investment into the South East Wales compound semiconductor sector displays great confidence and shows the value of investment in the region.

“We welcome the news of this investment to develop the cluster, which has been a priority of Cardiff Capital Region, Welsh and UK Governments for several years.

“It is tremendous to see the benefits this will bring to the region in creating highly skilled jobs, accelerating our progress in the UK Automotive industry, and positioning us as a competitor in not only UK investment, but also globally.”