1. Questions to the Minister for Economy – in the Senedd on 29 September 2021.
7. Minister, what plans does the Welsh Government have to strengthen the compound semiconductor industry in Wales? OQ56923
Thank you. My officials continue to work in partnership with the Cardiff capital region to ensure that this important industry continues to thrive in Wales, specifically in the south-east Wales cluster, which is recognised across the UK to have real growth potential.
Thank you for that, Minister. What is clear is that the UK, indeed Wales, is a global leader in the compound semiconductor industry, and it has been a fantastic effort over the last few years in making that happen.
I recently visited the Newport-based Compound Semiconductor Application Catapult complex in Newport, where I spoke with the chief executive officer there, who stressed the sheer importance of compound semiconductors, which are enabling most of our future technologies; indeed, there are hundreds of them in this Chamber at the moment, and they feature in meditech, in photonics and in electric vehicle development.
But it's very clear, from speaking to him, how we need to develop and promote skills—a bit of a theme today, Minister—especially as this is a leading industry for our workforce in the future. Minister, I wonder what plans does the Welsh Government have to encourage more of our young people into that industry and equip young people, schools, colleges and universities to have the necessary skills to enter that vital industry.
Actually, we're working alongside the industry to do just that. One of my early meetings was within the compound semiconductor cluster. I met one of the companies and I also met the Catapult as well, so I do understand the significance of the spread of semiconductors already.
The challenge is that, actually, they're in more and more of our devices—in your mobile phone and your car and you know—. The bigger challenge then comes in how we produce enough of them, then have the skills to exploit them and carry on with the research, the development and the innovation. So, I'm looking forward to more investment taking place within the cluster for further growth.
What would be helpful is if we had a genuinely joined-up approach with the UK Government, because we have been trying to have a conversation around this for some time. My officials and previous Ministers have been engaged in trying to press for greater engagement, because, if we can't manufacture more of these here, we're going to be more vulnerable to supply-chain challenges that are coming, and other parts of the world have big ambitions to significantly increase their production in this area.
My officials have recently met with UK Government officials, and I'll be following that up again to see if we can have a genuine UK-wide approach to this. If we did, then the cluster in south-east Wales would absolutely be one of the hotspots for further expansion and further growth in good jobs.
For the record, Llywydd, I've sat on the fifth generation project team at Bangor University in an unpaid position. Minister, the digital signal processing centre in Bangor is currently working with the compound semiconductor cluster to lift Wales's position in a global market. Peter Fox is right, we are leading the way, but we could strengthen our position in the global market.
Now, the technology they are developing takes a standard semiconductor chip to a functional device, and as an engineer I can tell you that that is a remarkable achievement and a great innovation. Therefore, can I ask you, Minister: will you instruct your officials to have a conversation with the DSP centre in Bangor to see how the Welsh Government can promote, support and integrate their work within an already well-established industry?
I'd be very happy to make sure that those conversations are taking place, if they're not already, because, as I say, this is a real opportunity for growth, where there are good jobs available and a real future for this industry. This isn't going to go away in the next few years. It will become more important—more important to have the right number of these chips available, but also, crucially, the skills that go alongside them to make sure we're developing that future technology here in Wales.