Growth Plans for the Semiconductor Sector in Wales

2 mins read

The Welsh Government is going forward with its plans to expand the semiconductor sector in Newport, Economy Minister Vaughan Gething announced.

Technology intricate details laid bare in electronics industry and Semiconductor Sector generated by Freepik
Technology intricate details laid bare in electronics industry and Semiconductor Sector generated by Freepik

This follows a successful trade mission to California’s Silicon Valley. The Welsh Government is working with the SPTS division of KLA Corporation, a wafer processing solutions provider for semiconductor and microelectronic device manufacturers, to support its plans to expand operations in the city. This is part of an already announced $100 million investment.

KLA Corporation's Contribution to the Semiconductor Sector 

The company, which currently employs a highly skilled workforce of over 550 people in the city, is developing its new base at Newport’s Celtic Lakes, which is home to a globally significant cluster of companies, including Vantage, Europe’s largest data centre, IQE, and the Compound Semiconductor Applications Catapult.

The Economy Minister met the chief executive and other members of the executive team of KLA during a Welsh Government-led trade visit to California’s Silicon Valley last week, where he reiterated the Welsh Government’s commitment to the sector. The Welsh Government’s plans include work to upgrade infrastructure on the Celtic Lakes site, skills development to ensure a continued pipeline of talented staff are available to take up new jobs in the semiconductor sector, and to develop local supply chains, helping to ensure other local companies benefit.

Growth and Investment in the Semiconductor Sector 

Following the trade visit, the Welsh Government is calling on the UK Government to prove its commitment with a fully funded plan for the future of the sector that drives up growth, reduces consumer costs, and strengthens security at home. The Minister warned that the UK is falling behind the ambitious mission set in the USA, which is a national priority for the Biden Administration.

Economy Minister Vaughan Gething said: “We are serious about backing a semiconductor sector that will drive up growth, create jobs, and lower costs for consumers. Wales is a global player in the industry that deserves the backing of UK plc as a whole.”

Newport's Role in the Semiconductor Sector Development

Newport’s compound semiconductor and technology cluster supports hundreds of well-paid jobs in an industry that powers the technologies people across the globe rely on to live their lives. During my visit to California’s Silicon Valley, I promoted Wales’ reputation as a nation with a thriving semiconductor sector and our determination to keep it that way. The Welsh Government is now progressing plans at pace to allow KLA to expand its operations in Newport, which we expect to unlock hundreds of new jobs – supporting our ambition to create new green jobs in the industries of the future.

Call for a Comprehensive Semiconductor Strategy 

The Minister is calling on the new UK Government Department for Science, Innovation, and Technology to publish a long-awaited comprehensive and fully funded semiconductor strategy to support the sector and protect Welsh and British jobs.