The UK government has secured the production of gallium arsenide semiconductors, critical to a number of military programmes, at one of the country’s biggest sites.
The future of the UK’s semiconductor manufacturing capacity is in safe hands, with the acquisition of a major semiconductor manufacturing facility in the north-east of England by the UK government.
The 310,000 square-foot Newton Aycliffe site in Country Durham, formally owned by semiconductor manufacturers Coherent, which is “the only secure facility in the UK with the skills and capability to manufacture gallium arsenide semiconductors (GaAs)”, said the Ministry of Defence, was acquired in order to safeguard the future of the facility, a critical component to the UK’s military supply chain, and secure up to 100 skilled jobs at the plant.
“Divesting the Newton Aycliffe plant is part of our effort to optimise our portfolio and streamline our operations, which allows us to focus our investment and capital on the areas of greatest long-term growth and profitability for the company,” said Jim Anderson, CEO of Coherent.
Gallium Arsenide semiconductors for military and civilian applications
Gallium Arsenide semiconductors have the ability to operate at higher frequencies and temperatures than alternative semiconductors, meaning they are often used in high-speed electronics and optoelectronics such as solar cells, X-ray detectors and chemical sensors. Due to their efficiency, however, they are also crucial to many military applications such as missile guidance systems and military laser systems.
Defence Secretary marks semiconductor importance
With the UK government’s acquisition of the plant and intention to invest in a new company named Orctric Semiconductors UK at the site, Defence Secretary John Healey said: “Semiconductors are at the forefront of the technology we rely upon today, and will be crucial in securing our military’s capabilities for tomorrow,” in a speech to the plant’s staff during a site visit.
“This acquisition is a clear signal that our government will back British defence production. We’ll protect and grow our UK Defence supply chain, supporting North East jobs, safeguarding crucial tech for our Armed Forces and boosting our national security,” said Healey.
‘Open for business’
The announcement comes a few weeks before the UK’s Global Investment Summit on October 14, 2024, which aims to attract investors and business leaders from around the world. The summit will focus on driving foreign direct investment into the UK in high-tech sectors such as AI, quantum computing and optoelectronics, and the acquisition reaffirms the government’s ‘open for business’ message of a pro-business environment in innovation sectors.
Along with military uses, semiconductors are also of strategic importance to many UK business markets, including the critical technology being a key part of the government’s clean energy strategy. With over a trillion semiconductors manufactured each year, and the market to reach $1 trillion by 2030, semiconductor manufacturing is especially open for business growth.
