Wales is on the brink of a significant economic shift with a groundbreaking £250 million investment from Vishay Intertechnology, a top player in semiconductor manufacturing. This strategic move is set to boost the UK’s semiconductor production, a key component in the rapidly growing electric vehicle (EV) market. It’s more than just an investment; it’s a catalyst for innovation, promising to create high-skilled jobs and elevate the UK’s position in the global semiconductor arena.
Jo Stevens, Secretary of State for Wales, shared her excitement, saying, “This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry. Earlier this month, I visited Vishay to see their advanced work in manufacturing, renewable energy, and defense—sectors vital to the Welsh economy. This investment will build on that success, creating and supporting hundreds of highly skilled and well-paid jobs, driving economic growth in south Wales and beyond, and helping us deliver our Plan for Change.”
Chancellor Rachel Reeves is set to visit Vishay Intertechnology’s Newport facility to officially recognize the company’s commitment to expanding semiconductor manufacturing in the UK. As the UK’s largest semiconductor facility, the Newport plant is poised to lead the development of large-scale compound semiconductor manufacturing. This investment aims to enhance production at this cutting-edge factory, focusing on advanced Silicon Carbide semiconductors, which are crucial for EV technology—enabling faster battery charging and better energy efficiency.
UK Business and Trade Secretary Jonathan Reynolds commented, “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.”
The expansion is expected to create over 500 high-value jobs in Wales, with hundreds more indirectly supported through the supply chain. This marks a pivotal step in securing domestic semiconductor supplies, crucial for the UK’s automotive industry and sectors like renewable energy and defense.
Supported by the UK Government’s Automotive Transformation Fund (ATF), this investment is a key part of the UK’s Industrial Strategy to strengthen the semiconductor supply chain. The ATF, along with the Advanced Propulsion Centre (APC), has unlocked over £6 billion in private investment, accelerating the transition to zero-emission vehicle technology.
The UK’s advanced manufacturing sector has seen the fastest growth in productivity per job among G7 nations between 2010 and 2023. This investment reinforces the UK’s position as a leader in high-tech manufacturing. The UK Government’s Autumn Budget has also committed over £2 billion in capital and R&D funding over the next five years for zero-emission vehicle manufacturing.
The UK’s automotive sector is enthusiastic about this investment. Mike Hawes, SMMT Chief Executive, stated, “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.”
This expansion is a crucial milestone for the UK’s industrial landscape. By ensuring essential semiconductor supplies for EV production, fostering job creation, and attracting private investment, the initiative is set to propel the UK towards a greener, technologically advanced future, cementing its position as a global hub for semiconductor innovation and advanced manufacturing.
