US tech company Vishay Intertechnology has confirmed a first phase multi-million-pound investment at its Newport foundry where it has longer-term plans to inject £1bn and create hundreds of new high-skilled jobs.
Vishay, which acquired the facility from Nexperia last year 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 - has confirmed an initial £51m investment. The funding boost includes £5m from the Welsh Government.
Vishay plans for the operation (which trades as Vishay Newport) to be transformed into a world leading plant for compound semiconducter silicon carbide which allow electric cars and wind turbines to convert power more efficiently, while enabling speeds up to 100 times faster than traditional chips. The initial funding is part of a short-term stabilisation of Vishay Newport, which will see new silicon product lines, primarily supporting the automotive industry in its shift to electrification.
Vishay is also seeking £52m of funding from the 海角视频 Government, through its 海角视频 Automotive Transformation Fund. The company is hoping for a decision before the end of the year. It approved, it would underpin a planned £1bn investment in new silicon carbide/gallium nitride technologies at Newport, creating the 海角视频’s first automotive centre of excellence.
The planned investment would not only protect the existing 490 jobs at the plant, but see staffing numbers climbing to 900 jobs 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. 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.
It would also see Vishay playing an even greater role in supporting the wider compound semiconductor cluster (known as CS Connected) in south Wales. Vishay said the investment would see the facility expanding to become a £800m annual revenue business with a global client base.
Roy Shoshani, chief technology officer of Vishay said: "We welcome this investment from the Welsh Government, which recognises the strategic advantage of investing in semiconductor technology. We’re excited about being part of driving the economic future of Wales. We look forward to moving ahead with our long-term investment plans for Vishay Newport.”
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Welsh Government Economy, Energy and Planning Cabinet Secretary, Rebecca Evans said: “Compound semiconductors are all around us – in our homes and in our phones, our trains and our turbines. They are a vital, if miniature, piece of what makes the modern world tick, with extremely strong global growth projections. And we in Wales are increasingly a world-leading nation in their production and manufacture.
“Today that is more evident than ever, with our international reputation attracting significant inward investment, the provision and occupation of state-of-the-art facilities, clear links with R&D and well-paid opportunities for employment and apprenticeships.
“We are now, after a decade of seeding the cluster, reaping the rewards of our commitment which we will continue to drive forward.”
To support the wider compound semiconductor cluster, earlier this year the Welsh Government acquired the unoccupied 51,000 sq ft Centre 7 office building at Cardiff Gate Business Park in a £5.8m deal. The building is attracting strong interest from high-tech firms, having already signed up Microlink Devices and CS Connected (the overseeing body for the compound semiconductor cluster).