Duffryn-based Newport Wafer Fab, a silicon chip semiconductor processing facility, has completed a multi-million-pound refinancing deal that involves a new asset finance facility from HSBC UK.

It can now invest in equipment to broaden its manufacturing capabilities, plus a new CHP (combined heat and power) plant designed to reduce its utility costs by more than £1.5 million per annum.

NWF (www.newportwaferfab.co.uk) is a key component of CS Connected — the world’s first compound semiconductor cluster, which is supported by investment from the Welsh and UK governments (plus the Cardiff Capital Region) and brings together research, expertise and production capabilities to deliver bespoke solutions to its customers, using advanced compound semiconductor materials.

It is one of 24 shortlisted projects — and the only one wholly based in Wales — to receive early-stage funding from UK Research and Innovation’s Strength in Places Fund to develop a full-stage business case submission.

Ken Skates, Welsh Minister for the Economy, said: “Wales’s semiconductor cluster produces cutting-edge technology that contributes to many of the items prevalent in modern everyday life.

“The Welsh government has invested significantly in establishing Wales as a global centre for advanced compound semiconductor technologies, and we were pleased to provide support for Newport Wafer Fab, so that they can continue working to attract further commercial investment.

“The cluster and its skilled workforce are hugely important to our economy, and with world-leading companies and technologies operating and thriving in the region, I look forward to its continued success and growth in the years ahead.”