Supported by £5 million from the Welsh Government, Vishay is injecting £51 million into Newport wafer fab, boosting Wales’ semiconductor sector with new production lines.
Vishay Intertechnology is set to invest £51 million into the wafer fab in Newport, Wales, United Kingdoms, which it purchased with £142 million in 2023 after Nexperia was forced to sell it. With this funding, the company aims to establish new production lines for power devices and facilitate a shift to silicon carbide (SiC) power devices.
The investment is supported by a £5 million contribution from the Welsh Government, which also supports other regional semiconductor firms.
Prior to Vishay’s purchase, the fab mainly housed a small foundry for gallium nitride (GaN) devices. The acquisition, saving almost 400 jobs, occurred after the UK government forced the sale due to national security concerns about the plant’s previous owner, Nexperia, which had links to China.
Welsh Economy Secretary Rebecca Evans praised the investment, highlighting Wales’ growing reputation as a global leader in semiconductor production. She expects the investment to strengthen the sector, which is vital for electronics used in devices like smartphones, household appliances, and cars.
The Welsh Conservatives also welcomed the investment, crediting the previous UK government’s strategic decisions for making the deal possible.
According to Gareth Lewis, BBC Wales Political Editor, “The purchase of the Newport plant by Vishay ended two years of uncertainty, and the new investment points to an even more certain future.”
The site, which has changed ownership multiple times since its establishment in 1980, is crucial for the UK’s semiconductor industry.
As per Lewis’ comment, there were concerns about job security at Newport Wafer Fab, with workers lobbying UK ministers. The site is vital to Wales’ semiconductor cluster plans and shows how geopolitics affects Wales’ skilled workforce, as the UK government values the industry only when companies are deemed secure.
Evans noted that Wales is increasingly becoming a global leader in electronics production. According to her point of view, after a decade of fostering the industry cluster, Wales is now reaping the benefits and will continue to support its growth.
Surely enough, Wales has seen a plethora of semiconductor investments in the recent times. KLA, a U.S.-based company, is building its European headquarters at Imperial Park, Newport, after acquiring the local semiconductor equipment company SPTS as part of Orbotech.
This $100 million project will include a development centre and manufacturing facility featuring cleanrooms for research and production and is expected to create up to 750 jobs.
Additionally, a £1.6 million pilot line for compound semiconductor packaging has also been launched at the nearby Compound Semiconductor Applications Catapult in Newport. Furthermore, Microlink Devices and CS Connected have become the first tenants at the Cardiff Gate innovation site, which spans 51,000 square feet.
In Swansea, a £2.5 million Net Zero research initiative at the Centre for Semiconductor Materials at Swansea University is collaborating with Vishay to explore ways of reducing emissions in the semiconductor industry.
Wales will also host a delegation of Canadian semiconductor companies in the spring.
