INVESTMENT from the UK government in the south Wales semi-conductor industry is "crucial" to ensure the sector flourishes.

That is according to the Welsh economy minister Vaughan Gething, who has appealed to his counterparts in Westminster to throw their weight behind the industry.

With the support of both the Welsh and UK Governments, south Wales has developed a strong and internationally recognised cluster of activity specialising in semiconductors, one of the UK’s key strengths in microelectronics.

In a letter to the interim secretary of state for science, innovation and technology Chloe Smith, Mr Gething said the Welsh government is in "active dialogue" with several companies with interest in investing further in Wales.

This, the Welsh government say, will help to develop or grow a presence in the semiconductor cluster and build on the existing business and academic ecosystem.

Mr Gething said: "The semiconductor sector requires long-term investment.

"Companies, and indeed the Welsh Government, need to understand the UK commitment to this industry at the earliest opportunity. If not, investment decisions will be made elsewhere.

“I would hope the strategy contains a significant investment commitment by the UK Government that will be proportionate to the commitments being made in the US and EU.

"I would wish to see compound semiconductors recognised as a priority for investment, and Wales’ cluster confirmed as a destination for that investment."

The Minister also drew the Secretary of State’s attention to the situation at Nexperia/Newport Waferfab in Newport. As a result of a Security and Investment Order, the future of that plant, one of the largest waferfabs left in the UK, is uncertain.

Last year, then-business secretary Grant Shapps blocked the sale of microchip firm Newport Wafer Fab to a Chinese-owned company on national security grounds.

The company is one of the UK’s largest manufacturers of semiconductors, but there were concerns over its reported £63 million purchase by Nexperia, due to security concerns connected to the company being owned by Chinese firm Wingtech.

Around 600 jobs are now at risk.

“The industry is facing real volatility," Mr Gething said.

“Urgent progress is now required to ensure prospective investors can take on this key site, preserve hundreds of high value jobs, and protect the capability the plant offers to the sector in the UK.”

The Minister has called for a meeting with the Secretary of State to discuss the planned next steps for the sector, so that Ministers from both governments are able to design a more collaborative and strategic approach.

In April, the Argus publicly invited key stakeholders in the region and both national governments, including the Secretary of State for Wales David Davies and the Welsh Economy Minister Vaughan Gething, to join us around the table and work on a vision and a plan to move forward.