- Semiconductor manufacturing firm Vishay Intertechnology is primed to make a £250 million investment to grow the operations of its semiconductor facility in Newport, Wales, which the American firm originally acquired back in March 2024.
- The facility is already the biggest of its kind within the UK.
- The investment has been supported by the UK government’s Automotive Transformation Fund, an £850 million pot which aims to develop an end-to-end electric automotive supply chain for the UK.
UK expands its semiconductor production
The investment will help increase production at the facility, namely for silicon carbide semiconductors. These are a key part for EV production, allowing for faster charging times, and increased efficiency between the battery and the motor – allowing for new milestones in driving range to be achieved.
Mike Hawes, Chief Executive at the Society of Motor Manufacturers and Traders, commented:
“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.”
Roy Shoshani, COO Semiconductors and CTO for Vishay, 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.”
In the era of software-defined vehicles, the need for car manufacturers to secure a stable supply of semiconductors has been more crucial than ever. We’ve already seen this through the previous semiconductor/chip shortage, which occurred over the height of the Covid-19 pandemic, and created significant disruption to automotive supply chains – with impacts like reduced vehicle production output, and even vehicles leaving factories with reduced levels of standard equipment.
In a world where geopolitical change is undergoing rapidly, supply localisation is quickly becoming the name or aim of the game for manufacturers. Just this week, U.S. President Trump announced a 25% tariff against all non-US car and car parts, with other markets likely to retaliate with similar measures. Particularly for Europe, supply localisation is easier said than done, however, with one of Europe’s biggest hopes for battery manufacturing, Northvolt, declaring bankruptcy. This move in Wales, however, is a positive sign for the future of the UK’s EV industry.
