Vishay Intertechnology, a US-based semiconductor manufacturer, is set to make an investment of £250m in its Newport facility in Wales. This investment is expected to enhance the UK’s electric vehicle (EV) production capabilities, aligning with the government’s Plan for Change. The initiative is expected to generate over 500 high-skilled jobs directly within the region and support hundreds more through the broader supply chain.
Chancellor of the Exchequer Rachel Reeves visited the Newport plant today to formally announce Vishay Intertechnology’s investment. The Newport facility, touted as the UK’s largest semiconductor manufacturing site, will see a significant boost in production capabilities. The focus will be on advanced Silicon Carbide semiconductors, which play a crucial role in EV production by enabling faster battery charging and efficient energy supply to motors, increasing overall vehicle range.
Focus on advanced silicon carbide technology
According to the UK government, the investment marks a significant vote of confidence in Wales’ industrial capabilities, particularly in South Wales where the world’s first Compound Semiconductor Cluster is located. The semiconductor cluster in South Wales is expected to offer businesses a comprehensive platform to meet the rising global demand for technologies powered by compound semiconductors. These technologies were projected to reach a value of £230bn by 2024.
Reeves stated that this development is an essential milestone for the UK’s ambition to become an advanced manufacturing hub. This announcement follows her Spring Statement where she emphasised economic growth and job security. Supported by the government’s Automotive Transformation Fund (ATF), this investment secures domestic supplies of semiconductors vital for various sectors including automotive, renewable energy, and defence.
“This is exactly the type of investment that will help us grow the economy, create highly skilled jobs and boost opportunity for people across the country, as we deliver on our Plan for Change to get more money in working people’s pockets,” said Reeves.
In November 2023, Vishay Intertechnology reached an agreement to purchase Nexperia’s stake in the Newport wafer fab. This acquisition signalled a new phase for the facility, providing stability and long-term certainty. Vishay Intertechnology has expressed a commitment to invest in the facility over at least two decades.
“This is an exciting moment, and the start of our plans for growth in the UK,” said Vishay Intertechnology semiconductors COO and CTO Roy Shoshani. “We can see through the development of the Industrial Strategy and the skilled workforce in Newport that there is a real opportunity to play to the UK’s strength in advanced semiconductors, delivering greater economic security and supporting Net Zero.”
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