A factory in South Wales could prove ‘vital’ in addressing the world’s semiconductor shortages.
Welsh company IQE produces wafers for a range of electronic devices around the world.
Apple iPhones are among the devices that use parts manufactured at the Newport facility.
The company’s new chief executive, Americo Lemos, said “time is of the essence” to expand capacity once funding is in place.
It has started talks with Welsh and UK governments to fund its expansion while also seeking private support.
- Why is there a chip shortage?
- The humble mineral that changed the world
- Chip shortage could last until 2023, says Autochef
“Newport is crucial. We build products here that go around the world [for] different types of technologies, different types of end products that really improve people’s lives,” said Mr. Lemos.
“And I’m really looking forward to that. If we expand the site here with the right level of investment, we will be able to spread our product around the world.”
Semiconductors, also known as microchips or chips, allow electricity to flow through devices and are the fundamental components of everything from smartphones to the massive data centers that power the Internet.
However, since the Covid pandemic, supplies have been restricted with some manufacturers canceling or delaying products while awaiting production of the vital components.
IQE’s Newport site, based in the former LG factory in Duffryn, has vast unoccupied space that the company says can quickly be used to expand production.
Mr Lemos said he hoped government funding would come quickly.
“The semiconductor shortage has hit a very large part of the economy, like the automotive industry [sector] and all these areas of our daily lives,” he said.
“Therefore, the cost of not having these products is much greater than the investment required to make it happen.”
The Welsh Government welcomed IQE’s expansion plans, adding: “There needs to be a clear and coherent approach to the semiconductor industry in the UK, which requires governments to work together and with the sector.”
Newport is home to several companies collectively known as the Semiconductor Cluster.
Founded in the 1980s, IQE in Newport produces a type of epitaxial wafer that is an important part of compound semiconductors.
“The things we make here will affect your life on a daily basis,” said Mr. Lemos.
The UK government has ordered a security probe into Chinese influence in the semiconductor sector following the acquisition of Newport Wafer Fab by Nexperia, a Dutch subsidiary of Shanghai-based Wingtech.
“We all understand the geopolitical tensions we live in,” Lemos said.
“But we are a global company and intend to work in any market where there is business, within the framework that exists today.
“As a result, I’m actually more excited than nervous about the future of the company here and the site we’re in.”
Add Comment