More than £500 million of private sector investment and up to 4,000 high-skilled jobs could be unlocked across South East Wales as the Cardiff Capital Region’s £160 million Investment Zone moves into delivery.
The 10-year programme will use the region’s growing strengths in compound semiconductors, advanced manufacturing and digital technologies to attract businesses and investment while expanding research, development and manufacturing capacity.
Funded by the UK Government and supported by the Welsh Government, the Investment Zone has been developed with Cardiff Council, Newport City Council and Cardiff University.
While activity will be concentrated around the Cardiff and Newport travel-to-work area, the ambition is for investment to generate economic benefits across all ten local authorities within Cardiff Capital Region through employment, skills and supply chain opportunities.
The region’s established compound semiconductor cluster will be central to the programme, with the Investment Zone designed to build a wider ecosystem around technologies where South East Wales already has internationally recognised expertise.
Cllr Dimitri Batrouni, Leader of Newport City Council, said:
“Cardiff Capital Region’s Investment Zone represents a landmark opportunity to accelerate growth, innovation and prosperity across South East Wales.
“While focused within Newport and Cardiff’s travel to work area, its benefits will be felt across all ten local authorities through new investment, stronger supply chains, enhanced skills provision and high-value employment opportunities.”
The programme is expected to unlock significant additional research, development and advanced manufacturing space as part of efforts to increase the region's capacity to accommodate growing technology businesses and inward investors.
Cllr Chris Weaver, Leader of Cardiff Council, said the programme provided an opportunity to build upon existing capabilities spanning semiconductors, advanced manufacturing, cyber security, creative industries and digital technologies.
He said:
“The £160 million Investment Zone programme gives us a once-in-a-generation opportunity to build on those strengths and attract hundreds of millions of private sector investment, supporting businesses to grow and innovate, attracting investment, and compete on a global stage.”
The move into delivery follows the signing of a tripartite Memorandum of Understanding between Cardiff Capital Region, the UK Government and Welsh Government.
Secretary of State for Wales Stephen Kinnock MP described the Investment Zone as an “engine room for high-tech industry and innovation”, with workforce development forming an important part of the programme.
A £4 million skills programme has now opened for delivery partners, designed to help develop the workforce required by growing technology and advanced manufacturing businesses and connect local people with emerging career opportunities.
Cabinet Minister for Enterprise, Connectivity and Energy Adam Price MS said bringing government, industry and academia together around the semiconductor cluster could strengthen productivity and supply chain resilience while encouraging further private investment.
He said:
“By bringing together business, academia and government around our world-leading semiconductor cluster, we’re turning opportunity into delivery and creating high-skilled jobs, unlocking major investment, and building a sustainable, innovative future economy for the region.”
Cardiff University will also play a central role as an anchor institution within the Investment Zone.
Professor Wendy Larner, President and Vice-Chancellor of Cardiff University, said the region was at a “strategic inflection point”, with university research capable of contributing to sustainable and inclusive economic growth.
With the programme now moving from planning into delivery, attention will increasingly turn to whether the £160 million public commitment can achieve its central objective: leveraging significantly greater private investment and translating South East Wales’ existing technology strengths into businesses, supply chain opportunities and thousands of new high-value jobs.
