Secretary of State for Defence (): On Friday 27 September, the
Ministry of Defence bolstered the UK defence supply chain with
the acquisition of a key semiconductor factory in Newton
Aycliffe, County Durham.
This factory is the only secure facility in the UK with the
skills and capability to manufacture gallium arsenide
semiconductors. These types of specialist semiconductors are used
in a number of military platforms, including fighter jet
capabilities. It is therefore crucial for our national security
that this facility remains suitable for UK defence needs.
This acquisition will not only safeguard the future of the
facility, which is critical to the defence supply chain and major
military programmes and exports, but also secures up to 100
skilled jobs in the North East of England.
Semiconductors are vitally important for the functioning of
almost every electronic device we use and are equally as
important in military platforms. This Government recognises the
strategic importance of semiconductors as a critical technology
for the future and a significant enabler of the Government's
growth and clean energy missions.
The semiconductor factory in Newton Aycliffe, which has been
renamed Octric Semiconductors UK, has been acquired by the
Government from its previous parent company Coherent Corporation
who were looking to sell or close the site.
I visited the facility on the first day of ownership accompanied
by the member for Newton Aycliffe and Spennymoor. The site and
the people working there are doing incredible things for Defence
for which I thank them.
This Government intends to invest in the company over the coming
years, ensuring the nation's security whilst boosting UK defence
industrial capacity, expanding export opportunities and
supporting our mission to deliver growth. These investments will
ensure the facility is capable of producing gallium arsenide
semiconductors as well as more powerful semiconductors in the
future.
Work has already started to implement best practice governance,
providing the appropriate financial oversight to secure the
company's future success.
