Cardiff University Report Highlights Major Supply Chain Opportunities in Wales' Compound Semiconductor Cluster
17th September 2024
South Wales, UK - A recent case study published by the Welsh Economy Research Unit (WERU) at Cardiff University, to support CSconnected Strength in Places Fund (SIPF) project funded by UK Research and Innovation., demonstrates significant economic opportunities for Welsh and UK businesses through stronger integration with the well-established Compound Semiconductor (CS) cluster in South Wales. This research emphasises the potential for enhanced local and national economic development via strategic buyer-supplier partnerships within the semiconductor sector.
The report outlines how Welsh and UK suppliers can leverage the demand within the CS cluster to their advantage, not only to boost employment and Gross Value Added (GVA) but also to facilitate the transfer of cutting-edge technology and knowledge across the supply chain. As global geopolitical tensions and supply chain vulnerabilities reshape international trade, there is a unique opportunity for domestic organisations to secure a more significant share of the semiconductor value chain in the UK.
Key findings from the study suggest that while the CS cluster in South Wales already contributes substantially to employment, exports, and productivity, there is untapped potential for increased local procurement. This could drive further investment in the supply chain, offering growth opportunities for current and new businesses in the region. The report also identifies several potential interventions to encourage closer buyer-supplier relationships within the cluster, which could lead to deeper integration into global value chains.
Commenting on the report, Hazel Hung, Business Development Manager at CSconnected, said, "This research highlights the critical opportunities within the cluster for Welsh and UK businesses. By enhancing local supply chain integration, we can drive innovation and economic growth within the semiconductor industry. Our focus is on fostering these vital partnerships to ensure that local firms are well-positioned to benefit from a semiconductor opportunity that is forecast to reach $1T a year by the end of the decade."
"With the ongoing evolution of national and international semiconductor strategies, there is a need for Welsh and UK businesses to position themselves strategically within the CS cluster's supply chain," said Max Munday, the report's lead author. "Our findings highlight the considerable benefits that local firms could achieve by aligning more closely with the cluster’s growing needs."
As the CS cluster continues to expand, this research highlights the importance of proactive policy measures and industry collaborations to maximise the economic benefits for the region and beyond.
The report is available on the CSconnected website: CSconnected: What are the supply chain development report (csconnected.com).
Contact
CSconnected
info@csconnected.com
Camille Colombier
About CSconnected
CSconnected is the collective brand for a growing number of advanced semiconductor related activities in Wales, home to a unique community of academic institutions, prototyping facilities and global, high-volume manufacturing capabilities that collaborate across a range of research and innovation programs. CSconnected is uniquely positioned to develop a global advantage in a sovereign, key enabling technology which will allow Wales and the UK to increase trade globally in critical sectors such as 5G communications, autonomous and electric vehicles, advanced medical devices, and consumer electronics of the future. In 2020, CSconnected received government funding provided through UK Research and Innovation’s flagship Strength in Places Fund (SIPF). The 55-month CSconnected SIPF project has a total value of £43million, supported by £25million of UKRI funds. It builds on Wales's regional strengths and integrates research excellence with a unique regional supply chain in compound semiconductor manufacturing.
