Newport has established a cluster of semiconductor companies, with IQE in production since 1988 and the wider cluster is growing.<\/p>\n
An independent report for CSconnected, produced by Cardiff University’s Welsh Economy Research Unit, found the south Wales compound semiconductor sector supported 3,140 jobs across Wales in 2025, up from 2,748 a year earlier, external<\/a>, a 14% increase. <\/p>\n Of those, 1,914 were direct jobs in the industry, concentrated around Newport and the wider M4 corridor. <\/p>\n The report said average salaries in the sector were about \u00a366,000.<\/p>\n Office for National Statistics data estimated the median monthly pay in the UK in August was \u00a32,657 – or \u00a331,884 a year, external<\/a>.<\/p>\n Nearby Bassaleg School in Newport now offers a semiconductor qualification to students who are keen to join the industry.<\/p>\n IQE has benefited from the recent boom in AI because its chips are part of the physical architecture of data centres.<\/p>\n They are not connected to the algorithms that allow humans to interact with chatbots, but are found in the computer hardware that underpins the operation.<\/p>\n “The last 18 months were quite bumpy,” Meier admits, as IQE struggled for relevance with investors.<\/p>\n Earlier this year its role in data centre computing power was acknowledged and its share price grew quickly, allowing the firm to clear debts and begin hiring more staff.<\/p>\n The impact of AI on jobs has been evident recently with tech giant Oracle slashing 21,000 roles globally<\/a> as it reshaped its business around the technology.<\/p>\n