Signing seals world's first compound semiconductor cluster in Wales
The signing followed an agreement in May by the Cardiff Capital Region (CCR) Regional Cabinet to contribute £37.9 million from the CCR City Deal’s Wider Investment Fund towards the establishment of a major, cutting edge facility, as an anchor in the region for high end production of compound semiconductors.
The aim being to support the development of a compound Semiconductor Industrial cluster in the region, with the potential to:
- lever £375m of private sector investment,
- create up to 2,000 high skilled jobs,
- return the investment for use on other regional schemes, and
- create hundreds more jobs in the wider supply chain cluster
It is the first such investment since the £1.2 billion CCR City Deal programme was formally signed by the leaders of the ten local authorities in the region on March 1.
The facility at Newport will be owned by the 10 Councils in the Regional Cabinet under the special purpose vehicle ‘CSC Foundry Limited’ / ‘LDC Ffowndri’ and the space leased to IQE plc for compound semiconductor manufacturing and applications development, helping the establishment of the world’s first Compound Semiconductor Cluster, CS connected, in the region.
The project is not a grant or a loan – it is a commercial investment with ownership of the foundry shared between the 10 Councils. The proposal seeks to return the original investment plus interest over the life of the project. ■