South Wales semiconductor cluster delivers £436m impact, new report shows
04th June 2026
CSconnected has published its Strength in Places Fund (SIPF) impact report 2026, marking the conclusion of a transformative programme that has established South Wales as a globally recognised hub for compound semiconductor innovation.
The report marks the conclusion of the Strength in Places Fund (SIPF) programme, a £43 million UK Research and Innovation-backed initiative designed to accelerate high-growth regional clusters through investment in research, advanced manufacturing and skills.
Its findings demonstrate the scale of that investment, with the cluster now supporting £436 million in Welsh Gross Value Added (GVA) and 3,140 jobs across Wales, alongside £480 million in exports representing more than 90% of output.
Since 2021, the programme has accelerated growth across research, manufacturing, skills and supply chain development, strengthening the UK’s sovereign capability in critical semiconductor technologies underpinning 5G, AI, electric vehicles, and future electronics.
Howard Rupprecht, managing director of CSconnected, said:
“The SIPF programme has enabled far more than the sum of its investments. It has brought together industry, academia and government to create a coordinated, high-performing ecosystem with global relevance.
This report demonstrates not just what has been achieved, but what is now possible. We are moving into the next phase with clear ambition: to grow cluster revenue to £1 billion and support 6,000 jobs by 2030.”
Over the five-year period, the cluster has delivered significant growth:
- Direct employment increased by 36% to 1,914 jobs
- Total Welsh jobs supported rose by 51% to 3,140
- Total Welsh GVA nearly doubled, reaching £436 million
- Annual sales grew to £531 million
The report also highlights strong productivity and value for money, with cluster productivity increasing by more than 60% since 2020 and cumulative GVA reaching approximately £1.3 billion over that period.
Alongside economic impact, SIPF has driven major progress in skills and talent development. In 2025 alone, more than 12,000 individuals local to South Wales were engaged through outreach programmes, while over 700 professionals have taken part in industry-aligned training courses designed to upskill and reskill the workforce.
The programme has also strengthened the UK supply chain and attracted inward investment, with new organisations joining the cluster in 2025 and increasing international interest from partners across Europe, North America and Asia.
As global demand for semiconductors accelerates and geopolitical pressures reshape supply chains, the report positions South Wales as a critical component of the UK’s long-term industrial strategy.
Looking ahead, CSconnected will focus on deepening UK-wide supply chain integration, expanding international partnerships and supporting emerging market opportunities across 6G communications, AI, clean energy and advanced manufacturing.
The full SIPF Impact Report 2026 is available to download here.
About CSconnected
CSconnected is a not-for-profit organisation focused on expanding the South Wales compound semiconductor industry. As the world's first compound semiconductor cluster, CSconnected brings together a unique community of academic institutions, prototyping facilities, and global high-volume manufacturing capabilities. The Cluster fosters cutting-edge research, innovation and global leadership, positioning Wales and the UK to compete globally in critical sectors such as 5G communications, autonomous and electric vehicles, advanced medical devices, sustainable technology and next-generation consumer electronics.
Website: csconnected.com
LinkedIn: CSconnected
For further information:
Adam Gettinby / Zoe Fawcett: CSconnected@purplefish.agency
Tel: 0117 925 1358
