Hazel Hung, Business Development Manager for CSconnected, shares her insights into the exciting initiatives aimed at strengthening the semiconductor supply chain in Wales.
South Wales has long been recognised for its pioneering work in semiconductor manufacturing, a legacy that dates back to the 1980s. Over the years, the region has nurtured advanced compound semiconductor technologies through collaborations between universities, industries, and research organisations.
However, it was not until 2015 that the concept of a coordinated cluster began to take shape, fostering a deeper level of collaboration and positioning South Wales as a global leader in the field.
The rise of the South Wales Semiconductor cluster really took shape in the transformative period beginning in 2019 when key players across the semiconductor sector united under the UKRI funded project, the Strength in Places Fund. This groundbreaking fund has enabled multi-partner collaboration, creating a foundation for research, development, and strategic growth.
Fast forward to 2025 and we’ve now built an ecosystem concentrating on the links between core cluster companies. These include Cardiff and Swansea Universities, the CSA Catapult, and industry leaders like IQE, Microchip, Vishay and KLA. CSconnected serves as the voice of the cluster, coordinating activities with these organisations to promote the region and attract new businesses and talent, with significant support from local and national initiatives.
Globally, the demand for compound semiconductors is surging, driven by their applications in everyday technologies such as smartphones, electric vehicles, and telecommunications. From enhancing camera functionality to enabling faster EV charging, these semiconductors play a crucial role in modern life.
As governments and industries worldwide develop semiconductor supply chain resilience, South Wales is well-positioned to compete on a larger stage. With a strong network of research institutions and industry leaders, the region continues to expand its supply chain capabilities in partnership with core partners.
The Compound Semiconductor Supply Chain Development Scheme
The Compound Semiconductor Supply Chain Development Scheme, funded by the Cardiff Capital Region, is another step forward in CSconnected's ongoing efforts to strengthen the semiconductor ecosystem. With a total investment of £1 million, this initiative builds on our existing work by supporting suppliers and buyers in the semiconductor sector, encouraging localised supply chains, and reducing reliance on overseas providers.
The programme focuses on generating links between core semiconductor firms and their suppliers or buyers. This not only strengthens the ecosystem but also supports regional economic growth.
Who Can Benefit?
The scheme targets companies across the supply chain, including advanced manufacturing services, mechanical and electrical engineering providers, industrial gas suppliers, and raw material manufacturers. It also seeks to attract downstream buyers, such as specialised semiconductor firms, automotive system integrators, and aerospace companies.
Even the smallest components, such as cleanroom suits or semiconductor design tools, are essential to the supply chain. By localising these elements, the programme aims to create jobs and retain talent within the region.
Funding and Objectives
The scheme offers grant interventions of up to £100,000, with a 50% match funding requirement. It focuses on two priorities:
- Upstream – Supporting suppliers to enhance productivity, competitiveness, and capacity.
- Downstream – Attracting buyers to South Wales and embedding relationships with local cluster organisations.
Our objective is to expand the semiconductor supply chain by creating stronger linkages with the primary cluster organisations. This aligns with the planned growth of key firms in the region, ensuring a robust and competitive ecosystem.
The initiative’s official launch is planned for late February 2025, with an in-person networking event designed to foster relationships between cluster firms and their supply chain partners.
This £1 million call is just the beginning, if successful, we hope to see more initiatives of this nature in the future.
Get Involved
Companies interested in participating can register their interest through an online form, which includes options for direct conversations with Hazel and access to additional resources. For further details, visit CSconnected South Wales Supply Chain Development Scheme.
