A Transformative Investment for Newport’s Future

Newport has secured a significant economic boost as part of a new south-east Wales investment zone, supported by £160 million in joint funding from the UK Government and Welsh Government. The investment zone will be centred around the region’s compound semiconductor cluster.

Strategic Focus and Economic Impact

The Cardiff and Newport Investment Zone will primarily focus on the compound semiconductor industry. The zone is designed to be a hub for investment and innovation, offering businesses a favorable environment with financial incentives, access to skills programmes, and infrastructure improvements.

Newport’s pivotal role in this development is highlighted by its existing achievements, including the world’s first compound semiconductor cluster, which has positioned the region as a prime target for both Welsh and UK Government innovation and investment initiatives.

Long-term Financial Commitment

The funding package, scheduled to run between 2025/2026 and 2034/2035 financial years, offers a flexible spending envelope that can be utilized for both spending and tax incentive packages. The investment zone will receive up to £160 million in flexible spending, divided between resource and capital spending.

Economic Development and Innovation

The Investment Zone is expected to boost regional productivity and growth by developing and expanding clusters, increasing regional innovation capacity, and attracting investment. A key focus will be on nurturing local supply chain capability while ensuring that the benefits of growth and investment reach the workforce and local communities.

Future Outlook

The initiative aligns with both Welsh and UK Government objectives, supporting Wales’s Innovation Strategy for an economy that innovates for growth, collaborates across sectors, adopts new technologies for efficiency and productivity, uses resources proportionately, and promotes fair work opportunities for citizens.