CSconnected 2024 Annual Report
28th February 2025
CSconnected Annual Report Highlights Economic Impact and Growth of Compound Semiconductor Cluster in Wales
The latest annual report from CSconnected, the compound semiconductor cluster in South Wales, underscores the sector’s leadership in driving innovation, productivity, and economic growth both regionally and globally. Authored by the Welsh Economy Research Unit at Cardiff University, the report highlights key developments in 2024, including employment growth, productivity levels, and increasing exports, while also showcasing the cluster’s sustained success since the project’s inception.
Since the launch of CSconnected, the cluster has demonstrated robust growth and resilience. Direct employment has increased by 28% since 2021, reaching 1,806 jobs in 2024, and cluster activity now supports 2,748 jobs in the Welsh economy. Moreover, every full-time equivalent semiconductor job in Wales supports a further 1.24 jobs in the wider UK economy, a total of 4,047 UK employees. The sector’s cumulative Gross Value Added (GVA) contribution to the Welsh economy has consistently strengthened, reaching £366 million in 2024. Exports, which account for over 90% of the cluster’s output, have grown to an estimated £466 million, supporting the UK’s trade and industrial strategy. Average salaries in the cluster are 60% above the Welsh average, reflecting the sector’s high-value and productive jobs.
Professor Max Munday, Cardiff University and author of the report, commented:
“The performance of the compound semiconductor cluster is particularly impressive given the broader economic context. While manufacturing employment declined in Wales and the UK, the cluster defied this trend, supporting both direct and indirect job growth. This reflects the sector’s resilience, high productivity, and strategic importance to the regional and national economy.”
A key strength of the cluster lies in the success of its partner organisations, whose collective expertise and investment have positioned South Wales as a recognised hub for semiconductor innovation and production. Global leaders such as Vishay Intertechnology and KLA have made significant investments in the region, reinforcing the region critical role in the semiconductor value chain. With partners across the supply chain supplying semiconductor materials, wafer fabrication, chip integration services, and capital equipment, the cluster is collectively driving high-value exports and advancing technological innovation.
Howard Rupprecht, Managing Director of CSconnected, said:
“Since 2020, aggregate employment in the cluster has grown steadily, supported by strategic investments that have enhanced our capacity and global reach. The cluster offers competitive salaries that are well above regional and sector averages, reflecting the high-value and skilled nature of the jobs within the cluster. With advanced skills, R&D intensity, and export-driven growth, the cluster is a driving force for economic development in Wales and beyond.”
Professor Wyn Meredith, Chair of CSconnected, added:
“The South Wales cluster is driving economic growth, supporting thousands of jobs, and contributing significantly to exports. We are delivering tangible results and our performance since the project began highlights what can be achieved through collaboration, strategic investment, and a shared vision. Continued success and future growth depend on sustained government support, with the South Wales Investment Zone and the UK Industrial Strategy playing a vital role in enabling further innovation, strengthening supply chains, and ensuring long-term global competitiveness.”
Looking ahead, the report anticipates continued growth into 2025, driven by rising demand for advanced semiconductor technologies and recent capacity expansions. As the global semiconductor industry approaches $1 trillion annually by 2030, South Wales is uniquely positioned to capitalize on this opportunity, further strengthening supply chains and supporting long-term industry growth.
View the report here: WERU CSconnected SIPF 2024 Annual Report
Notes to editors:
Contact
Camille Colombier, Marketing Manager
camillecolombier@csconnected.com
About CSconnected
CSconnected is the world’s first compound semiconductor cluster, located in South Wales. Supported by the Strength in Places Fund (UK Research and Innovation) and Cardiff Capital Region, the cluster unites leading companies, research institutions, and government partners to drive innovation, economic growth, and global leadership in semiconductor technology.
