Wales is set to receive a significant boost to its manufacturing sector.
Vishay Intertechnology, one of the world’s leading semiconductor manufacturers, will invest £250 million in the UK’s largest semiconductor facility in Newport.
The development is expected to create over 500 highly skilled jobs and support hundreds more in the wider supply chain, delivering a major uplift for the region’s economy and reinforcing South Wales’ position as a leader in advanced manufacturing.
Chancellor of the Exchequer Rachel Reeves visited the Newport plant today to formally welcome the investment, describing it as a “major win” for the UK’s ambitions to be a global hub for advanced manufacturing.
Vishay Intertechnology, one of the world’s leading semiconductor manufacturers, will invest £250 million in the UK’s largest semiconductor facility in Newport
The announcement comes just a day after the Chancellor’s Spring Statement, which set out plans for a “new era of security and national renewal” and confirmed upgraded growth forecasts by the Office for Budget Responsibility.
"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," Reeves said. "It delivers on our Plan for Change to get more money into working people’s pockets while securing the industries of the future."
The investment will enhance production capabilities at the Newport facility, which specialises in the manufacture of Silicon Carbide (SiC) semiconductors.
These advanced components are essential for electric vehicle (EV) production, offering faster battery charging times, improved energy efficiency, and longer driving ranges — key priorities for the automotive sector as it transitions towards zero-emission technologies.
To date, the ATF and its delivery partner, the Advanced Propulsion Centre, have leveraged over £6 billion in private investment
The initiative is supported by the UK government’s Automotive Transformation Fund (ATF), which has been instrumental in attracting private investment into the country’s automotive and advanced manufacturing sectors.
To date, the ATF and its delivery partner, the Advanced Propulsion Centre, have leveraged over £6 billion in private investment.
Business and Trade Secretary Jonathan Reynolds hailed the move as a clear endorsement of the UK’s industrial strategy and economic outlook. "This is a huge vote of confidence in the Welsh economy and our ambitions to position Britain as the destination of choice for industries of the future," Reynolds said. "It will create skilled jobs, strengthen our automotive and clean energy industries, and demonstrate that our Plan for Change is delivering tangible benefits."
The investment further cements South Wales’ status as home to the world’s first Compound Semiconductor Cluster, a critical asset in the UK’s broader ambitions to secure domestic supply chains for vital technologies.
Today’s announcement comes as the government continues its long-term commitment to the UK’s automotive sector
Secretary of State for Wales Jo Stevens also welcomed the announcement, highlighting its significance for the region’s economy. "This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry," Stevens said. "It will create and support hundreds of highly skilled and well-paid jobs, driving economic growth in South Wales and beyond."
Roy Shoshani, COO Semiconductors and CTO for Vishay, expressed optimism about the company’s future in the UK. "This is an exciting moment and marks the beginning of our growth plans here," he said. "With the UK’s industrial strategy and the skilled workforce in Newport, we see real opportunities to support Net Zero ambitions and strengthen economic security."
Today’s announcement comes as the government continues its long-term commitment to the UK’s automotive sector, confirmed in last year’s Autumn Budget with over £2 billion in capital and R&D funding pledged over five years for zero-emission vehicle manufacturing and supply chains.
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), praised the development as a significant contribution to the UK’s automotive future. "This investment in compound semiconductors is a major step forward for the innovation and technology needed to power the future of UK automotive," Hawes said. "It will create jobs, support supply chains, and enhance our strategic capabilities in the face of global competition."
As the UK positions itself at the forefront of next-generation manufacturing, today’s announcement signals both the confidence of global investors in Britain’s economic prospects and the growing importance of advanced semiconductor technology to the country’s industrial and clean energy strategies.