The UK government has pledged £250M to bolster Wales' semiconductor manufacturing capabilities, a move that will significantly contribute to the development of electric vehicle (EV) technology and strengthen the country’s position in global advanced manufacturing.
The investment, led by Vishay Intertechnology, one of the world’s largest semiconductor manufacturers, is poised to transform the semiconductor landscape in South Wales, particularly in Newport, where the UK’s largest semiconductor facility is located.
The announcement, which was made as part of a visit by Chancellor Rachel Reeves to the Newport plant this morning, is expected to create over 500 highly-skilled jobs in the region, with hundreds more potentially supported across the wider supply chain. The investment will support the production of advanced Silicon Carbide (SiC) semiconductors, a crucial component in the production of electric vehicles. SiC technology enables faster battery charging times, better energy supply efficiency to EV motors, and extended driving ranges—key features needed to accelerate the transition to cleaner transportation.
Vishay's £250 million investment marks a significant step toward securing the UK’s position as a global hub for semiconductor manufacturing, especially in industries vital to the country’s future economic growth, such as automotive, renewable energy, and defense. As the automotive sector transitions to zero-emission technology, SiC semiconductors are becoming increasingly important for electric vehicle manufacturers, making the investment critical to the UK’s long-term economic strategy.
Chancellor of the Exchequer Rachel Reeves commented: “Under this government the UK is open for business. 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.”.
Business and Trade Secretary Jonathan Reynolds said: “This is a huge vote of confidence in the Welsh economy and our plans to make Britain the destination of choice for investments in the industries of tomorrow. It will support local skilled jobs and raise living standards, showing our Plan for Change is working. “Vishay’s investment will help secure a domestic supply of semiconductors which are vital for our world leading automotive sector and support our clean energy industries – key growth driving sectors identified in our upcoming Industrial Strategy.”
Photo by Vishnu Mohanan
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