AMERICAN manufacturing company Vishay Intertechnology has confirmed its acquisition of Newport Wafer Fab for approximately £139 million ($177 million).

The 28-acre site in Duffryn is the largest semiconductor plant in the UK with the capacity to produce more than 30,000 chip wafers per month.

Vishay wants the facility to become a “manufacturing excellence centre” focusing on decarbonisation and electrification.

The company also says it will collaborate with local universities and other institutions across the UK to enhance its research and development efforts on power compound semiconductors.

Joel Smejkal, Vishay president and CEO, said the company would share its plans for Newport at an investor day on April 2.

It has also launched a website where it will publish further information and updates.

Economy minister Vaughan Gething said “Wales excels in the compound semiconductor industry" which is set to be worth around $1 trillion globally by 2030.

He said the news of Vishay's takeover brought "security to a hugely talented workforce after a long period of uncertainty".

“In our discussions over the past 18 months, Vishay have set out their intention to invest in the site and work with the existing semiconductor cluster in South Wales with a real sense of ambition for the opportunities this growing sector offers to young people in Wales in particular," he said.

"We look forward to a productive working relationship with the company."

‘Excited’

Ruth Jones, MP for Newport West and vice-chair of the all-party parliamentary group on semiconductors, met with industry representatives in London this week.

She said the risk of crises like Covid make the diversification of supply chains an “economic necessity” as well as a matter of national security, with 90 per cent of the most advanced microchips still made in Taiwan.

The UK Government forced the Fab’s previous owners, Nexperia, to sell because of security concerns over its Chinese ownership.

Despite a deal being struck for Vishay to acquire the site in November, the takeover was subject to a security review by the Cabinet Office and cleared on St David's Day, March 1.

South Wales Argus: Ruth Jones MP said crises like Covid make semiconductor supply an 'economic necessity'Ruth Jones MP said crises like Covid make semiconductor supply an 'economic necessity'

Ms Jones says South Wales is home to the world’s first compound semiconductor cluster, marking a shift away from traditional silicon chips.

“New semiconductors will be able to support the shift to more advanced and cleaner electric vehicles. It will also enable us to improve the efficiency of our energy systems,” she said.

READ MORE: American takeover of Newport Wafer Fab gets green light after 'security concerns'

“Microchips made in Wales could help develop more effective renewable energy systems that enable us to keep the lights on and power up industries in the most efficient way possible.

“This opportunity isn’t just good for our environment, it will provide highly skilled, well-paid jobs for young people. Welsh companies such as Iungo Solutions, working with the qualifications body WJEC are developing new qualifications to provide the equivalent of first year university degrees for semiconductor technicians, addressing a key gap in the market.

“I want our young people to be as excited about becoming an engineer in a factory like the Newport Wafer Fab as they are about being a doctor, a lawyer or a footballer.

“We have a brilliant workforce already, which is one of the reasons why a major American company like Vishay decided to invest £140 million in Newport, to develop the 28 acre site in Duffryn, the biggest semiconductor factory in the UK.

“It’s good news for the hundreds of workers at the plant, but also there are plans to invest and expand in the future. For every job created in the semiconductor industry, another six jobs are created in the wider supply chain.”