Building the Future: South Wales compound semiconductor cluster showcases ambitions for £1B tech community to UKRI

10th July 2025

Welcoming UKRI to the cluster
The South Wales compound semiconductor cluster is poised for a new fast-growth phase with a bold vision for the future. This ambition was outlined at a recent roundtable organised by CSconnected which welcomed the recently appointed UKRI Director of Place, Joanne Allison to the Compound Semiconductor Community Space (CS²) in Newport.

The event was attended by representatives of the Big Four cluster companies, KLA, Vishay, IQE and Microchip alongside SMEs and start-ups and Cardiff University and Swansea University  , and officials from the Welsh Government and Cardiff Capital Region.

The round table showcased the cluster’s transforming capabilities, collaborative innovation and vital research and development that is underpinning the region’s investment story.

Milestones for growth

CSconnected chair Wyn Meredith opened the session by highlighting the region’s journey so far and visualising its plans to be a globally recognised hub for innovation, research, design and manufacture of compound semiconductors.

He reinforced the impact and growth so far, charting the evolution of the region’s sector which has grown from supporting around 900 jobs to over 2,800 today, contributing £350–£400 million in GVA to the local economy.

Wyn also highlighted three key development phases for the cluster, covering the first phase from its inception in 2017 to establish R&D capabilities and renew infrastructure; onto phase two between 2020 and 2024 where co-creation and culture building has been vital.

He made mention of the value of the UKRI Strength in Places fund which has played a pivotal role in the cluster’s development to date. Wyn finished by explaining the next planned phase which will see focus shift to ecosystem expansion, particularly in overcoming underserved skills areas and working towards building a sustainable innovation and future growth roadmap.

Delivering the future vision to 2030

Managing Director of CSconnected Howard Rupprecht then went on to explain the focus areas for the cluster, illustrating its potential with unrivalled UK facilities alongside well matched industries.

He highlighted the ambition to create a sustainable and independent cluster with multiple funding sources which can generate exceptional value capture and provide huge benefits to the national Welsh community and the UK as a whole.

Howard stated the key tenets of CSconnected’s role in achieving this vision as taking the lead in promoting the cluster  and its far-reaching benefits, identifying and unlocking skills and talent needed to foster growth, and communicating vital policy to underpin the vision. He emphasised the need for focus on skills, stating if there are “no skills, there’s no growth”.

Representatives of the SME community from MicroLink Devices UK Ltd, Space Forge, Kubos and ffotoneg all contributed their perspectives to the session.

The UKRI focus
Jo Allison, from UKRI, shared insights into the new Place function, designed to foster regional growth by connecting disciplines and sectors. She explained the aim of this strategic approach is to strengthen the UKRI narrative around place-based investment and collaboration.

She explained she was excited to see the facilities of the cluster and recognised the readiness for the already established cluster and its importance to the Welsh economy and to the prospects for future UK growth.

Voices from the cluster

Next up, it was over to the cluster members, who each shared insights into their organisations and how the Strength in Places Fund has supported their growth and the region more broadly:

• Sam Evans, Vishay – Highlighted deep vertical relationships and the strategic decision to base operations in South Wales despite more access to funding in Europe.
• Andy Evans, KLA – Explained the value offered by the region’s skillset and collaborative spirit.
• Rodney Pelzel, IQE – Emphasised the importance of sovereign supply chains and innovation.
• George Taylor and Tracy Witherspoon, Microchip – Shared the company’s evolution from medical devices to power and telecoms, and the need to scale manufacturing locally.
• Julie Fazackerley, Microlink – Described how they chose to locate in Wales for its robust supply chain.
• Alastair McGibbon, Space Forge – Discussed the importance of local talent with scaling space manufacturing.
• Caroline O’Brien, Kubos – Migrated R&D to Wales and is aiming to grow from 8 to 20 employees.
• Ali Anjomshoaa, ffotoneg – Aspires to build a photonics foundry for healthcare and quantum applications in the region.

Academic and government support

• Peter Smowton, Cardiff University – Integrating compound semiconductors with silicon, offering MSc programmes and open-access facilities.
• Paul Meredith, Swansea University – Turning regional decline into opportunity with a £55m funded pilot foundry.
• CSA Catapult – Supporting AI-enabled power electronics.
• Welsh Government – Committed to building the ecosystem with start-up and scale-up programmes.
• CCR City Deal Representatives – Supporting the CS cluster, with the £160m Investment Zone reaching a key milestone as the UK Government confirms its focus on semiconductors and locations in Cardiff and Newport.

The South Wales compound semiconductor cluster is not only a success story, it’s a blueprint for how place-based innovation can thrive when long-term vision, collaboration, and investment align.

As discussions with UKRI and UK Government continue, stakeholders are hopeful that future investment will reflect the full scale of the opportunity. There is growing recognition of the need to ensure SMEs can access the facilities and resources funded by the public purse. Suggestions were made to embed this within KPIs for future programmes, helping smaller companies play a bigger role in the innovation ecosystem.

Jo Allison left the group with an important challenge: to keep building the narrative. With a demonstrable track record in jobs and GVA, the South Wales cluster has a compelling story to tell, one that reflects the future of UK tech manufacturing and the power of place to unlock national prosperity.

Notes to editors: 

Contact 

Camille Colombier, Marketing Manager
Nina Stevens, Communications Coordinator
comms@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.