The UK government has announced a £250 million investment in semiconductor manufacturing in South Wales, with US-based Vishay Intertechnology leading the initiative. The expansion will increase Silicon Carbide (SiC) semiconductor production at Vishay's Newport facility, supporting industries such as electric vehicles (EVs), renewable energy, and defense.

Vishay Moves to 200mm SiC Production in Newport

The investment will support Vishay's transition from 150mm to 200mm wafer production, enabling higher-volume manufacturing. The Newport fab, acquired in 2021 after Nexperia was forced to sell it, already houses the G10-SiC epitaxy production system, which supports 200mm wafer technology. Vishay had previously committed £51 million to the facility in November 2023.

"The G10-SiC epi production tool delivers a leading cost structure for 200mm epitaxy, which meets Vishay's productivity goals," said Danilo Crippa, Senior Director of R&D for SiC development at Vishay.

Major semiconductor players STMicroelectronics, Infineon, and Wolfspeed are also investing in 200mm SiC fabs to meet the rising demand in the automotive sector.

Government and Industry Leaders Welcome the Investment

The investment will create 110 additional jobs, bringing total employment at the Newport site to nearly 600 workers.

"This is the start of our plans for growth in the UK," said Roy Shoshani, COO of Vishay's Semiconductor Division. "With the UK's Industrial Strategy and Newport's skilled workforce, we see a strong opportunity to leverage the country's strengths in advanced semiconductors."

The UK's Automotive Transformation Fund (ATF) is supporting the project to strengthen local semiconductor supply chains. Business and Trade Secretary Jonathan Reynolds said:

"Vishay's investment will help secure a domestic supply of semiconductors, which are vital for our world-leading automotive sector and clean energy industries."

Chancellor of the Exchequer Rachel Reeves visited the Newport plant to announce the investment, calling it a major milestone:

"This investment will help us grow the economy, create highly skilled jobs, and boost opportunity across the country."

Strengthening South Wales' Semiconductor Cluster

With this investment, South Wales solidifies its status as a key semiconductor hub. Since 2015, the Welsh Semiconductor Cluster has attracted over £600 million in investment from companies like KLA, Microchip, IQE, and Cadence.

"This investment is a fantastic vote of confidence in the workforce at the Newport site, which has been a cornerstone of the UK semiconductor industry since 1982," said Wyn Meredith, Director of the Compound Semiconductor Centre in Cardiff.

The UK semiconductor market is expected to surpass $1 trillion annually by 2030, and Vishay's expansion strengthens the country's position in next-generation technology.