Newport key to UK semiconductor strategy: Science minister Chloe Smith

That was the message from a UK Government cabinet member who visited a Newport factory on Friday, to see how these tiny electronic components had a big future.

Westminster is pouring £1 billion into the sector, which produces parts for microchips in everything from mobile phones to military equipment.

But the amount of funding has been questioned by some critics, who say the government should have been more generous.

Chloe Smith, the secretary of state for science, marked the publication of the long-awaited National Semiconductor Strategy with a visit to the CSA Catapult factory on the edge of the city.

CEO Martin McHugh welcomes Chloe Smith to the CSA Catapult semiconductor factory in Newport. (Image: Newsquest)

The factory is one of several in the so-called South Wales cluster, centred around Newport, which fuel semiconductor manufacture, design, research and development.

Speaking to the Argus at the Newport site, Ms Smith said the city and the South Wales cluster were "a really significant part of the industry in the UK, and the strategy that we're setting out".

The £1 billion programme will "build on those strengths and go even further", she added.

Inside the CSA Catapult semiconductor factory in Newport. (Image: Newsquest)

David Davies, the secretary of state for Wales, said the visit to the Newport factory "demonstrates the importance of" the South Wales cluster to the UK.

The government's new strategy bodes well for jobs and investment in the area, he said, adding: "If you look at the way that this is now intertwining with Cardiff university, there's a real opportunity for young people to study semiconductor technology, and then move straight into really well-paid careers here in South Wales, which is something I greatly welcome".

David Davies, the secretary of state for Wales. (Image: Newsquest)

In a statement, Newport council leader Jane Mudd called the industry a "key pillar" of plans for economic growth in the city, and the new strategy a "positive step".

But Ruth Jones, the Newport West MP, said the £1 billion wasn't enough.

"When spread over a decade it becomes utterly insignificant in comparison to the scale of investment we’re seeing in the USA and Europe," she told the Argus.

The CSA Catapult semiconductor factory in Newport. (Image: Newsquest)

The USA and the EU have pledged a reported $50 billion and €43 billion to their own semiconductor sectors.

Ms Smith said the UK funding was "targeted on our strengths" and the government would be "putting the support where it is needed in the industry".

Chloe Smith, the UK secretary of state for science, innovation and technology. (Image: Newsquest)

The strategy focuses on research and innovation, which is states are the UK's strengths, rather than manufacturing.

That prompted cricticism from Welsh Government economy minister Vaughan Gething. “I’m pleased the UK Government have responded to widespread calls for action by publishing their long-delayed Semiconductor Strategy today," he said. 

"However, I am concerned the announcement risks falling short of the international challenge facing us. Wales and the wider UK have the potential to meet more of the manufacturing demand that will only grow in this crucial sector. Our ambition must now match that opportunity to create more good jobs in a more balanced UK economy."

There is ongoing uncertainty, less than two miles away from where the ministers were touring labs on Friday, at a city plant that does manufacture semiconductors.

Hundreds of workers at Newport Wafer Fab are fearing for their futures, after the UK government blocked the site's sale to Nexperia over alleged national security concerns.

Pending the outcome of legal proceedings, Ms Smith recognised workers were facing "a time of anxiety".

She added: "I want to reassure them the government is committed to a a successful divestment as well as committed to the semiconductor industry overall, as demonstrated by the strategy here today."