NEWPORT Wafer Fab is to receive a funding boost which will reassure its future as the semiconductor facility is set to get £51 million investment.

“We are now, after a decade of seeding the cluster, reaping the rewards of our commitment which we will continue to drive forward,” said Welsh Government Economy, Energy and Planning Cabinet Secretary, Rebecca Evans.

The investment will pay for new capital equipment to develop new silicon semiconductor product lines and training for around 200 staff.

Newport Wafer Fab is the UK’s biggest semiconductor factory, and it employs 485 people in Newport and the wider valleys from Swansea to Monmouthshire

Vishay Intertechnology, one of the world's largest manufacturers of discrete semiconductors and passive electronic components, has announced that it is investing £51m in Newport Wafer Fab. The semiconductor was sold to Vishay this year. 

The investment has been supported by £5m of Welsh Government funding and is the latest in a long list of good news for the South Wales compound semiconductor cluster – which continues to attract international interest and recognition.

Roy Shoshani, Chief Technology Officer of Vishay said:  “We welcome this investment from the Welsh Government, which recognises the strategic advantage of investing in semiconductor technology. We’re excited about being part of driving the economic future of Wales. We look forward to moving ahead with our long-term investment plans for Vishay Newport.”

Ms Evans said: “Compound semiconductors are all around us – in our homes and in our phones, our trains and our turbines. They are a vital, if miniature, piece of what makes the modern world tick, with extremely strong global growth projections. And we in Wales are increasingly a world-leading nation in their production and manufacture. 

“Today that is more evident than ever, with our international reputation attracting significant inward investment, the provision and occupation of state-of-the-art facilities, clear links with R&D and well-paid opportunities for employment and apprenticeships. 

Recent progress in the project includes a second US owned company, KLA, constructing its new European headquarters at Imperial Park, Newport.  With Welsh Government investment in the grid infrastructure at the site, the 215,000 square foot, $100 million development is creating a state-of-the-art innovation centre and manufacturing facility and will include cleanrooms for R&D and manufacturing. Recruitment of up to 750 employees is already underway.   

Also, Centre 7, a world-class facility supported by Welsh Government as part of its International Strategy, is already attracting inward investors recognising Wales as a semi-conductor hotspot, with Microlink Devices, and CS Connected the first tenants at the 51,000 square foot Cardiff Gate site.   

Another project is also being funded. £2.5m Net Zero research project at Swansea University’s Centre for Semiconductor Materials. It is pioneering the reduction of building emissions for the semiconductor industry and has research agreements with industrial members such as Vishay, which counts a number of Swansea alumni amongst its executives  

Alongside that project, Cardiff University hosted a prestigious international technical conference in October on semiconductor power devices, and Wales will welcome an inward mission by Canadian semiconductor companies in the spring.