Hundreds of millions of pounds to turbocharge manufacturing sector in Wales

Wales is set to benefit from a £250million investment from one of the world's largest manufacturers of semiconductors that will be vital to the production of electric vehicles, supporting the government's Plan for Change in delivering more skilled jobs, and turbocharging the economy.

The Chancellor Rachel Reeves will welcome Vishay Intertechnology's intention to invest on a visit to their Newport plant today (Thursday 27 March) - the UK's largest semiconductor facility - as part of plans to develop large-scale compound semiconductor manufacturing in the country.

The investment will boost production at the state-of-the-art factory where it will make advanced Silicon Carbide semiconductors, an integral part of EV production. This advanced technology supports faster battery charging time, enabling a more efficient supply of energy to the motor and longer driving distances.

Vishay's investment is expected to directly support over 500 high value, high skilled jobs in the region and indirectly support hundreds more in the wider supply chain.

It comes after the Chancellor's Spring Statement yesterday where she vowed to bring about “new era of security and national renewal” to kickstart economic growth, protect working people and keep Britain safe. The Chancellor confirmed that the OBR has upgraded their growth forecast in 2026 and every year thereafter and people will be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people's pockets. 

Chancellor of the Exchequer Rachel Reeves said:

“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”.

Supported by the government's Automotive Transformation Fund (ATF), the investment will help secure domestic supplies of semiconductors critical to the UK automotive industry, and other key industries including renewable energy and defence, supporting the Industrial Strategy. It also strengthens the UK's position in a competitive, global semiconductor landscape, supporting long-term growth for our economy.

It is a huge boost for the UK as a global hub for advanced manufacturing, which has the fastest growth in manufacturing productivity per job in the G7 between 2010-2023.

Business and Trade Secretary Jonathan Reynolds said:

“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.”

Secretary of State for Wales Jo Stevens said:

"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."

 Roy Shoshani, COO Semiconductors and CTO for Vishay, said:

“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.”

Ahead of her visit to Newport, the Chancellor will join the Invest in Women Taskforce roundtable with the Welsh First Minister which has secured over £250million of funding commitments to support female entrepreneurs in the UK.

Through the ATF, delivered in partnership with the Advanced Propulsion Centre (APC), the government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology. To date, the ATF and APC funding programmes have leveraged over £6bn of investment from the private sector.

The Autumn Budget confirmed over £2 billion for capital and R&D funding over five years for zero emission vehicle manufacturing and their supply chains. Building on the achievements of the ATF and APC programmes, this long-term commitment is a vote of confidence in the UK's automotive industry, supporting investment and productivity growth across UK automotive.

Mike Hawes, SMMT Chief Executive, 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.”

Notes to editors

Final support from the Automotive Transformation Fund (ATF) is subject to due diligence and other customary funding terms and conditions.