On Friday 27 September, the Ministry of Defence bolstered the UK defence supply chain with the acquisition of a key semiconductor factory in Newton Aycliffe, County Durham.
This factory is the only secure facility in the UK with the skills and capability to manufacture gallium arsenide semiconductors. These types of specialist semiconductors are used in a number of military platforms, including fighter jet capabilities. It is therefore crucial for our national security that this facility remains suitable for UK defence needs.
This acquisition will not only safeguard the future of the facility, which is critical to the defence supply chain and major military programmes and exports, but also secures up to 100 skilled jobs in the north-east of England.
Semiconductors are vitally important for the functioning of almost every electronic device we use and are equally as important in military platforms. This Government recognise the strategic importance of semiconductors as a critical technology for the future and a significant enabler of the Government’s growth and clean energy missions.
The semiconductor factory in Newton Aycliffe, which has been renamed Octric Semiconductors UK, has been acquired by the Government from its previous parent company Coherent Corporation who were looking to sell or close the site.
I visited the facility on the first day of ownership accompanied by the Member for Newton Aycliffe and Spennymoor (Alan Strickland). The site and the people working there are doing incredible things for defence, for which I thank them.
This Government intend to invest in the company over the coming years, ensuring the nation’s security while boosting UK defence industrial capacity, expanding export opportunities and supporting our mission to deliver growth. These investments will ensure the facility is capable of producing gallium arsenide semiconductors as well as more powerful semiconductors in the future.
Work has already started to implement best practice governance, providing the appropriate financial oversight to secure the company’s future success.
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