A new investment zone for the Cardiff Capital Region, which promises to create 4,000 hi-tech jobs, has taken a major step forward with the announcement of its industrial and key sites.
The zone 鈥 a joint initiative between the 海角视频 and Welsh governments and first announced by the former Tory administration in Westminster - will aim to drive innovation and growth across the advanced manufacturing and digital and technology sectors, with a focus on the region鈥檚 compound semiconductor cluster.
Backed by 拢160m of 海角视频 Government funding over a ten year period, the zone will help further develop the seemiconductor hub in Newport around Imperial Park, where key businesses including KLA, IQE and Vishay - which is investing 拢250m at its chipmaking facility - as well as seeking to develop a science and technology park to become the focus point for R&D activity and investment in Cardiff.
The proposed 900,000 sq ft business park at St Mellons, with the integrated South Wales Mainline Cardiff Parkway rail station, has been identified as a potential site for the science and tech park element for the zone.
The backers of the project, in Investec and the Roberts family, are currently re-evaluating the cost of a four platform train station after securing planning approval from the Welsh Government earlier this year after a near two year delay.
The business park element has attracted strong potential occupier interest including from aerospace giant Rolls-Royce. A third site within the 600 hectares allocated for the investment zone, could be located in south Cardiff.
The planned zone has passed the second of five gateway reviews, which will now be accelerated.
As well as 拢160m of government funding support, the aim is for the zone to attract a further 拢500m in private investment, create 4,000 new jobs and unlock three million square feet of manufacturing, R&D and innovation capacity.
The zone will be overseen by the South East Wales Corporate Joint Committee - a body with statutory powers for the region which was launched last year having evolved from what was the Cardiff Capital Region (which it refers to itself as) made up of the region鈥檚 10 local authorities. It is also responsible for the region鈥檚 拢1.2bn City Deal.
海角视频 Minister for Building Safety, Fire and Local Growth Alex Norris said: The Cardiff Capital Region investment zone, which we鈥檙e backing with 拢160m of funding, will build on the region鈥檚 industrial strengths to shape an exciting future for local people 鈥 creating new skilled jobs and driving economic growth locally and across Wales.
Welsh Secretary Jo Stevens said: 鈥淭his step forward for the Cardiff Capital Region investment zone is a huge boost for the world-class business and industry within the area.
It will drive growth, create 4,000 jobs and build on the talent and expertise that already exists in this part of Wales.
鈥淲orking alongside Welsh Government we are building the economy of the future and delivering for working people across the country.
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: The Cardiff and Newport investment zone marks a transformative step forward for South East Wales and demonstrates our firm commitment to establishing the region as a global powerhouse in compound semiconductors.
鈥淲e will continue working closely with the South East Wales Corporate Joint Committee and the 海角视频 Government to build on the region鈥檚 strengths, attract significant private investment, strengthen regional partnerships and deliver real benefits that people across Wales will feel in their everyday lives.鈥
Leader of Monmouthshire Council, and chair of Cardiff Capital Region, Ann Brocklesby, said: This is a tremendous step forward for the investment zone. We look forward to building upon our strong industrial base and world-class research in semiconductors to drive innovation in emerging technologies, and fast-growing markets, whilst working together with 海角视频 and Welsh Government.
By aligning our efforts with the region鈥檚 unique assets and fostering collaboration across sectors, we aim to create a dynamic environment where new ideas thrive, investment is attracted, and meaningful impact is delivered to people and places across the region.鈥
Michael O鈥橲ullivan, executive vice president of US tech giant Vishay, which operates the largest semiconductor factory in the 海角视频 based in Newport, said: 鈥淭his is a critical milestone for South Wales and the 海角视频 as a whole 鈥 a vote of confidence in the talented workers who have attracted investment from Government and companies across the globe. We know that the world class semiconductor cluster in South Wales has the expertise to meet the great challenges of our age 鈥 from net zero to the huge energy demands that will come from the growth of AI and electric vehicles.
鈥淲e plan to invest 拢250m, supporting 500 jobs to manufacture cutting edge compound semiconductors. These microchips with faster processing speeds will reduce energy losses and support advanced manufacturing industries from next generation wind turbines, data centres, to the latest electric vehicles and chargers.
鈥淲e look forward to working in partnership with leaders in the Welsh Government, Cardiff Capital Region and beyond to make the most of this opportunity for growth.鈥
An investment zone for North Wales, focusing on advanced manufacturing in Wrexham, which will also receive 拢160m of support, has also been confirmed.
Wales is also expected to get a AI growth zone from the 海角视频 Government, for which bids are now been considered from across the 海角视频.
An obvious candidate is the planned data centre campus from US data centre giant Vantage at the site of the former Ford engine plant in Bridgend. The campus investment is linked to the growing usage of AI. It has the required connection to the National Grid.
It will build on its existing data centre campus in Cardiff. It is also looking at the potential for other data centre sites in South Wales, as are a number of other leading data centre operators.
