The UK Government has approved Vishay Intertechnology's acquisition of Newport Wafer Fab, setting in motion a £1bn investment in UK's largest chip-making facility.

Last year Nexperia Newport, had been ordered by the UK Government to sell its microchip facility in south Wales on national interest and security grounds.

Newport Wafer Fab, located on 28 acres, is an automotive-certified, 200mm semiconductor wafer fab that supplies primarily automotive markets. It is the largest semiconductor manufacturing site in the UK.

In November, American manufacturing giant Vishay Intertechnology secured a takeover deal valued at over £140 million.

Under new leadership in early 2023, Vishay set an ambitious goal of investing approximately $1.2 billion in capacity over a three-year period in order to position the company to seize the opportunities created by the megatrends of e-mobility and sustainability needed for a Net Zero economy. While this transaction is supplemental to its capex investment strategy, adding Newport Wafer Fab to its manufacturing footprint was instrumental to achieving the businesses goal of expanding its capacity for customers.

Responding to the Vishay announcement, Economy Minister Vaughan Gething said:

“I am pleased that the long overdue decision to permit the acquisition of Newport Waferfab by Vishay International has now been taken.

“Wales excels in the compound semiconductor industry which offers enormous growth opportunities over the long term.  From mobile phones to electric vehicles we all rely on the products made in South East Wales as part of a global industry that is set to be worth around $1trn by 2030. Today’s news brings security to a hugely talented workforce after a long period of uncertainty and I hope they can look forward a new sense of optimism.

“In our discussions over the past 18 months, Vishay have set out their intention to invest in the site and work with the existing semiconductor cluster in South Wales with a real sense of ambition for the opportunities this growing sector offers to young people in Wales in particular. We look forward to a productive working relationship with the company.

“Our Economic Mission makes clear the importance we attach to the compound semiconductor cluster given the enormous role it will play as part of the rapidly changing economy that will fuel over long term, creating thousands of quality jobs in the years to come.

“We have supported that growth by agreeing an Investment Zone for Newport and Cardiff and we call on the UK Government to work with us through its Semiconductor Strategy ensure this Welsh strength achieves its full potential.”