This will support the government’s Plan for Change in delivering more skilled jobs, and turbocharging the economy.
The Chancellor Rachel Reeves will welcome Vishay Intertechnology’s intention to invest on a visit to their Newport plant today (Thursday 27 March) - the UK’s largest semiconductor facility - as part of plans to develop large-scale compound semiconductor manufacturing in the country.
Also read: Key Takeaways from the Spring Statement 2025
Wales Investment: Advancing Electric Vehicle Production
The investment will boost production at the state-of-the-art factory where it will make advanced Silicon Carbide semiconductors, an integral part of EV production. This advanced technology supports faster battery charging time, enabling a more efficient supply of energy to the motor and longer driving distances.
Vishay’s investment is expected to directly support over 500 high value, high skilled jobs in the region and indirectly support hundreds more in the wider supply chain.
It comes after the Chancellor’s Spring Statement yesterday where she vowed to bring about a “new era of security and national renewal” to kickstart economic growth, protect working people and keep Britain safe. The Chancellor confirmed that the OBR has upgraded their growth forecast in 2026 and every year thereafter and people will be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people’s pockets.
Government’s Plan for Change
Chancellor of the Exchequer Rachel Reeves said: “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.”
Supported by the government’s Automotive Transformation Fund (ATF), the Wales Investment will help secure domestic supplies of semiconductors critical to the UK automotive industry, and other key industries including renewable energy and defence, supporting the Industrial Strategy. It also strengthens the UK’s position in a competitive, global semiconductor landscape, supporting long-term growth for our economy.
Vishay’s Confidence in Wales' Semiconductor Industry
It is a huge boost for the UK as a global hub for advanced manufacturing, which has the fastest growth in manufacturing productivity per job in the G7 between 2010-2023.
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.”
Impact of Wales Investment on Local Economy
Secretary of State for Wales Jo Stevens said: "This massive investment by Vishay and the UK Government is a huge boost for Wales's world-leading semiconductor industry.
"Earlier this month I was at Vishay to see the work they do on advanced manufacturing, renewable energy and defence industries – all key sectors in the Welsh economy.
"This investment will build on that success to create and support hundreds of highly skilled and well-paid jobs, driving economic growth in south Wales and beyond and helping us deliver our Plan for Change."
Roy Shoshani, COO Semiconductors and CTO for Vishay, said: “This is an exciting moment, and the start of our plans for growth in the UK. 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.”
Moving Forward: Government and Industry Collaboration
Ahead of her visit to Newport, the Chancellor joined the Invest in Women Taskforce roundtable with the Welsh First Minister which has secured over £250million of funding commitments to support female entrepreneurs in the UK.
Through the ATF, delivered in partnership with the Advanced Propulsion Centre (APC), the government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology. To date, the ATF and APC funding programmes have leveraged over £6bn of investment from the private sector.
The Autumn Budget confirmed over £2 billion for capital and R&D funding over five years for zero-emission vehicle manufacturing and their supply chains. Building on the achievements of the ATF and APC programmes, this long-term commitment is a vote of confidence in the UK’s automotive industry, supporting Wales investment and productivity growth across UK automotive.
Semiconductors Driving Innovation in UK Automotive
Mike Hawes, SMMT Chief Executive, said: “This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK Automotive. British-made next-generation semiconductors will create jobs, support supply chains and enhance the UK’s strategic capabilities. Digitisation and decarbonisation are at the heart of the transition taking place amongst UK automotive manufacturers, and this investment can support that transition, aided by a comprehensive industrial strategy to deliver the growth the sector and the economy needs.”
Wyn Meredith, Chair of CSconnected, The Welsh Semiconductor Cluster said: ‘This investment is a fantastic vote of confidence for the quality and resilience of the workforce at the Newport Wafer Fab site, which has been a bedrock of the UK semiconductor industry since 1982. Since launching the Welsh Semiconductor Cluster in 2015, our partners have invested heavily in creating a world-leading research and innovation ecosystem, with a highly skilled talent pipeline to address a semiconductor market opportunity which is set to surpass $1Trillion per annum by 2030. Global semiconductor players like KLA, Microchip, IQE, Vishay, and recently announced Cadence, have recognised the value of our proposition and have committed in excess of £600M investment to fuel the continued growth of semiconductor manufacturing in South Wales.’
