News: Microelectronics
27 March 2025
UK welcomes Vishay’s planned £250m investment in Newport Wafer Fab for silicon carbide device production
During a visit to Newport Wafer Fab in South Wales — the UK’s largest semiconductor facility — a day after giving her Spring Statement (promising a “new era of security and national renewal” to kickstart economic growth, protect working people and keep Britain safe), the UK Government’s Chancellor of the Exchequer Rachel Reeves has welcomed the intention of discrete semiconductor and passive electronic component maker Vishay Intertechnology Inc of Malvern, PA, USA to invest £250m in boosting production at its subsidiary Vishay Newport Ltd as part of plans to develop large-scale compound semiconductor manufacturing in the UK, specifically of silicon carbide devices.
Such technology is vital to the production of electric vehicles (EV), supporting faster battery charging time, enabling more efficient supply of energy to the motor and longer driving distances. As an integral part of EV production, the investment supports the UK government’s Plan for Change in delivering more skilled jobs. Vishay’s investment is expected to directly support over 500 high-value, high-skilled jobs in the South Wales region and indirectly support hundreds more in the wider supply chain.
Supported by the government’s Automotive Transformation Fund (ATF), the investment will help to secure domestic supplies of semiconductors critical to the UK automotive industry, and other key industries including renewable energy and defence, supporting the UK Government’s Industrial Strategy. It is also expected to strengthen the UK’s position in a competitive, global semiconductor landscape, supporting long-term growth for the economy.
Through the ATF, delivered in partnership with the Advanced Propulsion Centre (APC), the UK government is unlocking private investment in UK automotive design, development and manufacturing as the sector transitions to zero-emission technology. To date, the ATF and APC funding programs have leveraged over £6bn of investment from the private sector. The UK Government’s Autumn Budget last year confirmed over £2bn for capital and R&D funding over five years for zero-emission vehicle manufacturing and their supply chains.
“This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry,” commented Jo Stevens, UK Secretary of State for Wales. “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,” she added.
“This is the start of our plans for growth in the UK,” notes Roy Shoshani, COO Semiconductors and CTO at Vishay. “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 UK’s strength in advanced semiconductors, delivering greater economic security and supporting net zero,” he adds.
“This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK automotive,” comments Mike Hawes, chief executive of the UK’s Society of Motor Manufacturers and Traders (SMMT). “British-made next-generation semiconductors will create jobs, support supply chains and enhance the UK’s strategic capabilities.”
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