THE UK’s semiconductor industry will receive £1 billion in investment over the next decade as ministers look to ensure the country is not reliant on China for technology advancements.

Prime minister Rishi Sunak said the funding, forming part of the national semiconductor strategy, would help “build our competitive edge on the global stage”.

This comes after Wales' economy minister Vaughan Gething appealed to the UK Government earlier this week for more engagement in the industry in South Wales.

The announcement of the 20-year plan comes after Mr Sunak used a G7-related trip to Japan to agree a partnership on semiconductors with Tokyo as part of efforts to reduce the reliance on Beijing for the supply of the essential microchips.

The UK Government strategy will focus on areas of design, compound semiconductors — set for use in driverless vehicles and future smartphones — and in research, which will be supported by the country’s higher education sector.

A sum of £200 million will be invested in 2023-25 to improve industry access to infrastructure, fund more research and development, and facilitate greater international co-operation.

The £1 billion over the next decade will aim to grow the domestic sector, mitigate against supply chain disruption and protect Britain’s national security, the department said.

It remains unclear what impact the investment will have on the Nexperia/Newport Waferfab facility in Newport. 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.

Making semiconductors is a key industry in Newport, with companies such as IQE based here in addition to Nexperia, along with the Compound Semiconductor Applications Catapult – an organisation created to support research in the sector. Unveiling the new strategy on Friday, the prime minister said: “Semiconductors underpin the devices we use every day and will be crucial to advancing the technologies of tomorrow.

“Our new strategy focuses our efforts on where our strengths lie, in areas like research and design, so we can build our competitive edge on the global stage.

“By increasing the capabilities and resilience of our world-leading semiconductor industry, we will grow our economy, create new jobs and stay at the forefront of new technological breakthroughs.”

Science, Innovation and Technology Secretary Chloe Smith said: “Semiconductors are the beating heart of all electronic devices, from powering our phones and cars to medical equipment and innovative new technologies like Quantum and AI which will make a real difference to all of our lives.

“Britain is already a world leader when it comes to researching and designing semiconductor technology – our new strategy will double down on these core strengths to create more skilled jobs, grow our economy, boost our national security and cement the UK’s status as a global science and technology superpower.”

Lucy Powell, Labour’s shadow digital, culture, media and sport secretary, said the scale of ambition in the strategy would likely be “met with disappointment” after “years of delay”.

She said: “This failing Conservative Government is still not clear what role they will play in developing capacity and resilience in the UK’s semiconductor capabilities.

“Rather than the £1 billion headline, the reality is £200 million over the next three years – significantly less ambition than our competitors."

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.