Science Secretary Peter Kyle MP visited Newport, South Wales, on March 4, 2025. He toured KLA and Vishay, two major semiconductor firms based in the area. These companies make tiny chips that run phones, cars, medical devices, and more. Kyle believes Newport is paving the way for UK tech leadership.
“Newport is full of brilliant ideas,” Kyle said. “We want companies and leaders to team up.” He sees this partnership as the key to making the UK a global tech powerhouse. Semiconductors drive big industries like healthcare, green energy, and aviation. In Newport, they also support over 1,700 jobs and add £265 million to the Welsh economy yearly.
Kyle shared big news during his visit. As of March 4, UK firms can tap into a €1.3 billion EU fund called Chips Joint Undertaking (Chips JU). The UK joined this program in 2024 through Horizon Europe. “This puts us in the global race,” Kyle said. “It’s a massive boost for growth.”
At Vishay’s Newport Wafer Fab, Kyle explored a cleanroom where chips are crafted. Female engineers led the demo, showcasing cutting-edge tech. “These women are outstanding,” Kyle praised. Vishay, which bought the site for $177 million in March 2024, got a £51 million boost in November 2024, including £5 million from the Welsh Government.
This funds new research into efficient chips like silicon carbide (SiC) and gallium nitride (GaN). Michael O’Sullivan, Vishay’s Executive Vice President, said, “We work with universities, locals, and leaders. It’s all tied to the UK’s tech goals.”
Kyle was joined by Jo Stevens MP, Secretary of State for Wales. She said, “Wales and the UK are syncing up perfectly now.” Labour’s control in both Cardiff and Westminster helps, Kyle noted. “Newport has talent, skills, and investment rolling in.”
It’s not all smooth sailing, though. Taiwan, South Korea, and the US dominate chip-making. Supply shortages, like those during the pandemic, hurt progress. Kyle sees Chips JU as a fix. “It’s about staying ahead with new ideas,” he said.
Leaving Newport, Kyle was pumped. “This isn’t just about jobs, it’s our future.” From smarter healthcare tools to cleaner energy systems, Newport’s chips make it happen. He’s set on the UK leading the world in tech. “The potential is huge,” he said. At Vishay and beyond, Newport’s tech buzz is just getting started.
The UK’s National Semiconductor Strategy, unveiled in May 2023, commits up to £1 billion over 10 years to bolster the sector, focusing on design, R&D, and compound semiconductors rather than large-scale manufacturing, unlike the US ($52 billion) and EU (€45 billion) investments.
This strategy, part of the Department for Science, Innovation and Technology’s five technologies of tomorrow, aims to enhance economic growth, mitigate supply chain disruptions, and protect national security. Recent £26.8 million investments in innovation centers at Bristol and Southampton universities further support R&D, aligning with Newport’s activities.
The global semiconductor market is projected to reach $1 trillion by 2030, driven by demand in AI, quantum computing, and net zero technologies. However, the industry is highly competitive, with Taiwan, South Korea, and the US leading in manufacturing.
The UK faces challenges, including supply chain vulnerabilities exposed by recent disruptions like the COVID-19 chip shortage. Initiatives like Chips JU aim to address these, fostering international collaboration to tackle chip shortages and cybersecurity threats.
Kyle acknowledged, “To stay ahead, the UK must continue prioritizing research and development while addressing supply chain vulnerabilities.”
