The investment will enhance the UK’s semiconductor capabilities, create hundreds of high-skilled jobs in Newport, and reinforce the government's Plan for Change, aimed at stimulating economic growth and industrial innovation.
Chancellor of the Exchequer Rachel Reeves is expected to visit Vishay’s Newport facility— the UK’s largest semiconductor plant— today to formally welcome the investment.
The funding will enable the expansion of large-scale compound semiconductor manufacturing, a critical component in electric vehicle (EV) production.
Vishay’s Newport facility will focus on producing advanced Silicon Carbide (SiC) semiconductors, which play a key role in EV technology by improving battery charging efficiency, energy supply to motors, and increasing driving range. The investment will support over 500 direct high-skilled jobs in the region, with hundreds more expected across the supply chain.
This announcement follows the Chancellor’s Spring Statement, in which she promised a “new era of security and national renewal” aimed at driving economic growth, protecting workers, and increasing disposable incomes.
The Office for Budget Responsibility (OBR) has also revised its economic growth forecasts upwards for 2026 and beyond, with an average income boost of £500 per person per year by the end of the parliamentary term.
Chancellor Rachel Reeves welcomed Vishay’s decision, stating: “Under this government, the UK is open for business. "This is exactly the type of investment that will help us grow the economy, create highly skilled jobs and boost opportunity for people across the country, as we deliver on our Plan for Change to get more money in working people’s pockets.”
The investment is backed by the Automotive Transformation Fund (ATF), which supports the UK’s domestic semiconductor supply chain, a crucial sector for industries such as automotive, renewable energy, and defence.
By strengthening the UK’s semiconductor capabilities, the investment enhances national economic security and secures the country’s position in an increasingly competitive global market.
The UK has experienced rapid manufacturing productivity growth, with the country leading the G7 in this area between 2010 and 2023.
Boost for Wales’ semiconductor industry
The investment is also a major boost for the world’s first Compound Semiconductor Cluster, located in South Wales. Business and Trade Secretary Jonathan Reynolds highlighted its importance, stating:
“This is a huge vote of confidence in the Welsh economy and our plans to make Britain the destination of choice for investments in the industries of tomorrow. It will support local skilled jobs and raise living standards, showing our Plan for Change is working.
“Vishay’s investment will help secure a domestic supply of semiconductors, which are vital for our world-leading automotive sector and support our clean energy industries – key growth-driving sectors identified in our upcoming Industrial Strategy.”
Welsh secretary Jo Stevens also praised the investment, saying: "This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry.
"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.
"This investment will build on that success to create and support hundreds of highly skilled and well-paid jobs, driving economic growth in South Wales and beyond, and helping us deliver our Plan for Change.”
Vishay’s COO for semiconductors, Roy Shoshani added: “This is an exciting moment, and the start of our plans for growth in the UK. 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.”
Vishay’s investment aligns with the government’s wider strategy to bolster the UK’s semiconductor industry. The Automotive Transformation Fund (ATF), delivered in partnership with the Advanced Propulsion Centre (APC), has already attracted over £6 billion in private investment to support the UK’s transition to zero-emission vehicle technology.
The Autumn Budget allocated more than £2 billion over five years to capital and R&D funding in zero-emission vehicle manufacturing and its supply chains. This commitment builds on the ATF and APC programmes, ensuring continued investment and productivity growth in the UK automotive sector.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT) said: “This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK automotive.
"British-made next-generation semiconductors will create jobs, support supply chains and enhance the UK’s strategic capabilities.
“Digitisation and decarbonisation are at the heart of the transition taking place amongst UK automotive manufacturers, and this investment can support that transition, aided by a comprehensive Industrial Strategy to deliver the growth the sector and the economy needs.”
Wyn Meredith, Chair of CSconnected, the Welsh Semiconductor Cluster added: “This investment is a fantastic vote of confidence for the quality and resilience of the workforce at the Newport Wafer Fab site, which has been a bedrock of the UK semiconductor industry since 1982.
“Since launching the Welsh Semiconductor Cluster in 2015, our partners have invested heavily in creating a world-leading research and innovation ecosystem, with a highly skilled talent pipeline to address a semiconductor market opportunity expected to surpass $1 trillion per annum by 2030.
“Global semiconductor players like KLA, Microchip, IQE, Vishay, and recently announced Cadence, have recognised the value of our proposition and have committed in excess of £600 million investment to fuel the continued growth of semiconductor manufacturing in South Wales.”
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