US Tech Giant Announces £250 Million Investment in Newport Plant, Boosted by UK Government Support
American tech company Vishay Intertechnology has unveiled plans for a substantial £250 million investment in its Newport foundry to produce semiconductors crucial for electric vehicle technology. This investment marks a significant step in the company’s long-term strategy to infuse £1 billion in total and create numerous high-skilled job opportunities. Backed by the UK Government’s Automotive Transformation Fund, the funding is contingent on meeting research and development targets and capital expenditure milestones. The UK Government will provide substantial financial support to aid in the development of advanced silicon carbide semiconductors at scale, key components in electric vehicle manufacturing. These semiconductors enhance power conversion efficiency in electric cars and wind turbines, achieving speeds up to 100 times quicker than traditional chips, positioning Newport at the forefront of technological advancement.
Expected to secure over 500 jobs at the Newport facility and hundreds more within its supply chain, Vishay’s investment will have a lasting impact on the region’s economy. The company’s ambitious £1 billion investment plan aims to expand staff numbers to 900 by 2030, offering salaries 50% higher than the local average. As the global compound semiconductor market is projected to surge from $67 billion to $350 billion by 2030, Vishay’s strategic move positions Newport as a key player in the semiconductor industry. Vishay acquired the facility from Nexperia in 2023 for £150 million following a UK Government directive to divest due to underlying Chinese ownership concerns related to national security.
During a visit to the plant, Chancellor Rachel Reeves expressed enthusiasm, highlighting the UK’s pro-business environment and the investment’s role in fostering economic growth and job creation. Vishay’s Chief Technology Officer, Roy Shoshani, outlined the company’s vision for growth in the UK, leveraging the nation’s Industrial Strategy and skilled workforce to champion advanced semiconductor development, ensuring economic stability and supporting sustainability goals. Last year, Vishay kickstarted its investment with an initial £52 million, including a £5 million contribution from the Welsh Government. Research by Oxford Economics indicates that each semiconductor job generates nearly six additional roles in the wider economy, demonstrating the investment’s multiplier effect.
Beyond electric vehicles, Vishay is exploring opportunities in defence, aerospace, and renewable energy sectors, aligning with its global business strategy. Secretary of State for Wales, Jo Stevens, hailed the substantial investment as a major boon to Wales’ semiconductor industry, paving the way for hundreds of well-paid jobs and fostering economic growth across south Wales. Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, lauded the investment as pivotal for advancing UK Automotive, underpinning innovation and technology essential for the industry’s future. As the automotive sector transitions towards digitisation and decarbonisation, this investment is poised to support the sector’s growth and bolster the nation’s strategic capabilities.
In conclusion, the £250 million investment by Vishay Intertechnology promises a transformative impact on Newport’s semiconductor industry and the wider economy, positioning the region as a key player in the global technology landscape. With substantial UK Government support and a strategic long-term vision, Vishay’s investment underscores a commitment to innovation, sustainability, and economic growth.