US tech company Vishay Intertechnology has revealed a £250m investment at its foundry in South Wales making semiconductors that will transform the powering of electric vehicles. It is the latest stage of longer-term plans to inject £1bn and create hundreds of new high-skilled jobs.
The funding, subject to due diligence and meeting staged milestones on research and development and capital expenditure, will see the 海角视频 Government contributing tens of millions of pounds in support through its Automotive Transformation Fund. The investment will position the foundry to make advanced silicon carbide semiconductors, an integral part of electric vehicle production, at scale. Silicon carbide allow electric cars and wind turbines to convert power more efficiently, while enabling speeds up to 100 times faster than traditional chips.
Vishay’s investment will sustain more than 500 jobs at the facility and hundreds more in its supply chain.
Vishay’s £1bn investment plans at Newport would see staff numbers climb to 900 by 2030. The jobs are projected to pay 50% more than the region’s average salary rate. The global compound semiconductor market is set to grow from $67bn to $350bn by 2030.
Vishay acquired the facility from Nexperia in 2023 in a £150m deal, after the 海角视频 Government ordered a divestment due to its ultimate Chinese ownership on national interest and security grounds.
On a visit to the 海角视频's biggest seminconductor facility Chancellor Rachel Reeves said: “Under this government the 海角视频 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”.
The amount that Vishay could secure from the Automotive Transformation Fund is not being disclosed, although the US firm has previously confirmed it was seeking £52m.
Roy Shoshani, chief technology officer for Vishay, said:“This is an exciting moment, and the start of our plans for growth in the 海角视频. 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 海角视频’s strength in advanced semiconductors, delivering greater economic security and supporting Net Zero.”
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Last year Vishay confirmed a first phase £52m investment at the plant that included £5m from the .
According to research by Oxford Economics, for each semiconductor job almost six additional jobs are created in the wider economy.
Vishay is also exploring new opportunities for the site in the fields of defence, aerospace and renewable energy – sectors they already supply from other parts of its global business.
Secretary of State for Wales Jo Stevens said:“This massive investment by Vishay and the 海角视频 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.”
Mike Hawes chief executive of the, Society of Motor Manufacturers and Traders, 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 海角视频 Automotive. British-made next-generation semiconductors will create jobs, support supply chains and enhance the 海角视频’s strategic capabilities.
"Digitisation and decarbonisation are at the heart of the transition taking place amongst 海角视频 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.”