This is Wales: Fuelling the Next Global Tech Revolution
In the world’s race to define the future of technology, the spotlight often shines towards Silicon Valley, or the innovation corridors of East Asia. However, aside these well-explored paths, there is another place where the technology revolution is continuing to go from strength to strength. Wales is open for business; ready to welcome new partners, investors, and pioneers.
Powered not by scale or hype, but by agility, collaboration, and a relentless drive to solve the world’s most complex challenges.
This is the story of Wales, and its emergence as a global force in compound semiconductors. A sector quietly supporting the devices, networks, and breakthroughs that will define the world for us all in the next century.
The World at a Crossroads
The stakes have never been higher. The compound semiconductor industry is at the heart of a geopolitical and technological shift. From the supply chain challenges of recent years to the urgent and intensifying race for AI, 6G, electric vehicles, and clean energy, the world’s appetite for advanced chips is insatiable - but the risks of disruption are greater than ever.
The Big Question
For technology leaders and global investors, the question is urgent: Where can you find not just capacity, but resilience, innovation, and a talent pipeline ready to take on tomorrow’s challenges?
The Power of the Cluster
Wales’ answer is both simple and profound: here we out-collaborate, out-innovate, and outpace where it matters most. By building a unique, interconnected ecosystem where academia, industry, and government collaborate as one, Wales has created an environment that is truly open for business; that welcomes new entrants, encourages SME growth, and supports global players alike.
“People know more about the semiconductor industry now, and they know what that landscape’s starting to look like in South Wales,” says Andrew Evans, of KLA’s Newport operation. “Five years ago, hardly anyone in our graduate intake had heard of us. Now, we’re attracting talent from across the UK and beyond. That’s the power of what’s happening here.”
A Legacy of Innovation. A Future of Scale.
The Welsh compound semiconductor cluster is not an overnight phenomenon. Its roots stretch back to the 1960s, when pioneering research between Bristol and Welsh universities spun out companies that would eventually evolve into today’s global players. “A lot of the semiconductor technology the world utilises today came out of Bristol and Wales,” Evans notes. “Ironically, Silicon Valley could have been ‘the Silicon Valleys,’ it started here.”
Today, the cluster is anchored by CSconnected, a partnership of world-leading companies, universities, and research institutions. But the ecosystem is much broader, encompassing a growing constellation of innovative SMEs and startups, as well as global names like Photronics, GE, Vantage, and General Dynamics, all of whom have chosen to be part of the Welsh story.
The region’s close links to the wider UK and Europe, and its deep, long-standing relationship with the US - especially in defence and technology industries make it a strategic location for companies seeking access to global markets. Cardiff and Swansea Universities both feed the ecosystem with cutting-edge research and a steady stream of best-in-class talent.
And this is not just an academic exercise. The Welsh cluster is delivering real-world outcomes at scale:
Real-World Impact
- KLA’s Newport Expansion: KLA is doubling down on Wales as a global hub for advanced wafer processing equipment having recently opened a new $138m R&D manufacturing facility. “We were 140 employees in Wales in 2009; now we’re 620,” Evans says. “We’re recognised by Welsh Government as an anchor company, with significant impact on the Welsh economy.”
- Vishay’s £250m Investment: In 2025, Vishay’s decision to build a new semiconductor manufacturing facility in South Wales, backed by UK and Welsh Government support, sent a powerful signal to global investors about the whole region’s momentum and credibility.
- Cadence/CSA Catapult Design Centre: The new design centre, at Centre 7 in Cardiff, a collaboration between Cadence and the Compound Semiconductor Applications Catapult, is accelerating R&D and commercialisation, linking Wales directly to global supply chains and innovation networks.
- A Vibrant SME Landscape: Alongside anchor firms like KLA, IQE, and Microchip, the region is home to Kubos, Siemens, SMD Semiconductors, and a raft of pioneering SMEs. The rise of chiplets and heterogeneous integration is opening the door for even more new entrants, driving innovation and growth at every level.
- STEM Pipeline and Community Engagement: Companies like KLA are investing deeply in the next generation, from graduate schemes to hands-on STEM (Science, Technology, Engineering and Mathematics) outreach in local schools. “Half of it is about building that background knowledge up about semiconductors,” Evans explains. “The appetite’s there, and we’re making sure Wales is ready.”
Agility, Resilience, and Open Innovation
What sets Wales apart is not just its technical expertise, but its ability to move fast, adapt, and collaborate. This tech cluster’s size is its advantage: decisions are made quickly, and partnerships form organically between industry, academia, and government, providing tangible benefits for customers. For example, two firms sharing the same international end-customer collaborated to combat shipping delays by bringing their individual components together within-country, saving critical production time and contributing both financial and environmental savings. This agility has proven critical in a sector defined by rapid change and global uncertainty, and the Welsh cluster has shown it can pivot, and scale as needed.
Wales’ physical location within the United Kingdom, a “Five Eyes” intelligence alliance country, alongside the US, Canada, Australia, and New Zealand, adds a layer of strategic security for global players, especially those in defence and high-tech sectors. The long-term UK/US relationship is reflected in the presence of major US investors and partners in the Welsh tech ecosystem.
“We’ve been here a long time, and we’re here for the long haul,” Evans says.
Collaboration at the Core
The Welsh approach is rooted in collaboration at every level. CSconnected acts as a convening force, bringing together companies, universities, and government to align strategy, share resources, and accelerate innovation. “The cluster’s strength is in its connectedness,” says Howard Rupprecht, of CSconnected. “We’re not just co-located; we’re co-creating. That’s what allows us to lead on the global stage.”
This spirit of open innovation is evident in the approach to talent, too. From apprenticeships to advanced degrees, the cluster is building a pipeline that spans the full spectrum of skills. “We’re working with schools, colleges, and universities to make sure the next generation sees a future in semiconductors, and has the support to get there,” Rupprecht notes.
Meeting the World’s Biggest Challenges
The Welsh cluster is not just building chips; it’s enabling the technologies that will define the future: AI, 5G and 6G networks, electric and autonomous vehicles, advanced medical devices, and clean energy solutions. “Virtually every electronic device you use is made possible by our equipment,” Evans says. “From your smartphone to your dishwasher to your car, Wales is part of the story.”
The region’s companies are at the forefront of developing compound semiconductors that are faster, more efficient, and more adaptable than traditional silicon. These materials are critical for the next wave of innovation, from ultra-fast data centres to the electrification of transport and the decarbonisation of energy.
The Road Ahead
Of course, the journey is not without challenges. The global semiconductor sector faces intense competition, skills shortages, and supply chain vulnerabilities. The Welsh cluster is not immune, but its response is instructive.
- Skills and Talent: “There’s a global shortage of skilled workers in this industry,” Rupprecht acknowledges. “But our integrated approach linking education, training, and industry gives us an edge. We’re attracting talent from across the UK and internationally, because people see the opportunity here.”
- Supply Chain Resilience: The cluster’s close-knit ecosystem allows for rapid response to disruptions, while its links to UK, European, and global suppliers add layers of security. The region is also investing in new facilities and capabilities to reduce reliance on overseas suppliers.
- Scaling Up: Moving from R&D to high-volume manufacturing is a perennial challenge, but the cluster’s collaborative model, and recent investments in infrastructure, are closing the gap.
Wales offers proof of delivery: world-class project sites, a skilled workforce, a culture of innovation, and space for more. The opportunity for growth and collaboration is real, and the movement here is gaining momentum.
This is Wales: Join our Journey
So, what comes next? The story of Wales and compound semiconductors is still being written. With every new investment, every graduate position, and every breakthrough achieved, Wales is redefining the art of the possible.
Wales is not asking the world to take a leap of faith. It is offering a proven, dynamic, and resilient ecosystem. One that is already delivering for global leaders and is leading the way in terms of what comes next.
For those looking to shape the future of technology, Wales is not just an appealing option. It is the answer.
The next chapter is an open invitation: to collaborate, to innovate, and to build the future together, in Wales. To find out more about how Wales can help your business grow, scale, and succeed, join us on this journey.
