The North East's burgeoning high tech electronics manufacturing industry could support more than 7,500 jobs and contribute nearly £900m to the regional economy in the next five years, a new report says.
The report published by Business Durham and the Compound Semiconductor Applications (CSA) Catapult looks at the advanced material electronics industry (AME), which uses materials that have been engineered to have superior properties and which is described as the building blocks of digital technologies . It suggests that jobs in the region's cluster of companies - which include chip makers, microwave communications specialists and defence suppliers, among others - has already grown from 1,800 in 2020 to nearly 2,800 currently - though the recent measure is said to include a broader definition of AME.
The report's authors say there is scope for further, significant growth with average projected employment growth in the industry at 43% over the next five years, and 44% of firms expecting growth of more than 50%. Key barriers to that growth are identified as skills availability, funding, and the development of new products. .
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On this front, the CSA - which was set up in 2018 to help the 海角视频 become a global leader in compound semiconductors - points to its own efforts. The body offers expert knowledge and equipment to businesses and established a North East office in 2023 at NETPark, the epicentre of AME activity in the region with tenants such as chip maker Pragmatic Semiconductor, satellite communications firm Filtronic and organic semiconductor specialist SmartKem.
Elsewhere, evidence was found of a strong materials science commercialisation capability in the region as researchers looked at the distribution of electronic and materials patents across North East first. They found 44 such patents, which they say represents a much more significant portion of the North East's total and the 海角视频's equivalent rate.
Regional firms were found to be targeting the US, Taiwan and India with their patent applications. The distribution is thought to indicate North East companies' focus on manufacturing and process innovations. Analysis of North East AME firms' capabilities showed lacking in marketing and sales, fabrication and assembly. The report suggests there is opportunities in developing local suppliers in those areas.
Martin McHugh, CEO at CSA Catapult said: “This new report provides clear evidence of the growth opportunity across the North East electronics industry. The region is supporting critical industries such as defence, telecoms and healthcare by developing next-generation semiconductor and compound semiconductor technologies in collaboration with a strong academic base.
“CSA Catapult is committed to supporting growth in the region. Our role as a trusted, neutral convener is to help the region achieve the significant projections outlined in the report.”
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Kerry Walker, business growth director at Business Durham, said: "We are delighted to see the significant growth potential of the North East electronics industry, as highlighted in this report. Business Durham is committed to supporting the growth of this important sector, which is creating jobs and contributing to the economic prosperity of the region.
“The North East has a strong track record in innovation and manufacturing, and we believe that the advanced materials electronics sector has a bright future ahead. We will continue to work with our partners to support businesses in this sector to access the skills, funding, and research and they need to thrive.”
The report - Advanced Material Electronics: Landscape map of the North East sector - was produced by smart cities consultancy Urban Foresight, which has a Newcastle office.