The Cardiff Capital Region (CCR) has provided a £6.25m grant to US semiconductor equipment manufacturer KLA to support the expansion of its new manufacturing and R&D facility at Imperial Park in Newport.
The new 237,000 sq ft facility includes manufacturing space, a fabrication plant, as well as office space for 750 employees. The £100m site is located within the compound semiconductor cluster in Newport, next to the Cardiff Capital Region’s CSC Foundry.
An additional £750,000 in repayable finance from Newport City Council will be provided to KLA alongside the city region funding over the next four years.
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The Cardiff Capital Region, a statutory body covering the ten local authorities of south-east, was asked to explain the rationale for the grant and why it hasn’t been in the form of repayable debt in line with other previous financial support it has made directly to firms located in the region such as Creo Medical, Ogi and Zip World.
In a statement it said: “Each funding application has its individual considerations and the grant funding to KLA of £6.25m from Cardiff Capital Region (CCR) and £750,000 from Newport City Council, which is payable over four years, was approved through a vigorous approval process, with accountability through CCR’s Corporate Joint Committee.
“This funding aligns with CCR’s mission to create economic wellbeing and prosperity across the region, including its focus on the compound semiconductor cluster in Imperial Park in Newport, among other sectors.
“KLA applied for the £7m sum to bridge a £11m plus funding gap that was calculated looking at credible alternative locations for the project.
Secretary of State for Wales Jo Stevens said:“I’m delighted to see this investment into the world-leading compound semiconductor cluster in Newport. KLA’s new facilities mean they can expand and employ more highly skilled people.
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“The 海角视频 Government’s funding for Cardiff Capital Region and the local investment zone is helping drive economic growth in a sector where Wales leads the way, delivering the plan that we have set out in our industrial strategy.”
Dimitri Batrouni, leader of Newport City Council, said: “This investment from CCR represents a stake in the new industries of the future, the new advanced manufacturing that is being built here in Newport on a massive scale. To drive a semiconductor plant such as KLA’s, we need people, and we need skills and other companies in the local supply chain to make it all happen. 80% of these needs are coming from within the region and this is a great opportunity for the economy of South East Wales.”
Andrew Evans, senior director, commercial legal, at KLA said: “The investments from both KLA and CCR into this new site reinforce the importance of Wales to KLA’s global operations. The technologies created and developed in Wales are critical not only to our customers in Europe but globally too. The technology and infrastructure, combined with the skilled talent pool here continue to make this operation in Newport very competitive on the global semiconductor landscape.”