Cadence attempts £2.5m design hub in Wales

US EDA company Cadence Design Systems is making a significant move by establishing a semiconductor design centre in Wales, with support from the Compound Semiconductor Applications (CSA) Catapult and a £2.5m (€3m) investment from the Welsh government. The new centre, located in Cardiff, aims to offer design services to small companies and scale-ups across the UK while also addressing the long-term skills needs in the industry.

With funding from Cadence, the Welsh Government, and support from CSA Catapult in Newport, the centre is expected to create over 100 new jobs for graduate students over the next five years. Operated by the Catapult, this initiative marks a significant step towards boosting the semiconductor design sector in the region.

Cadence has previously set up a similar semiconductor design centre in Scotland, known as the Alba centre, back in 1997 during the dotcom semiconductor boom. However, the centre faced recruitment challenges and eventually closed in 2005. The new Welsh centre, located in Centre 7 in Cardiff Gate, is positioned as a joint venture company that will leverage Cadence’s expertise and AI-driven IC design tools along with CSA Catapult’s advanced facilities and testing capabilities.

According to a recent study by the UK’s Department for Science, Innovation, and Technology, integrated circuit design engineers are facing a severe shortage of skills. The establishment of this new venture aims to cultivate an employee-engaged culture that benefits all stakeholders and contributes to the success of the business.

Rebecca Evans, the Cabinet Secretary for Economy, Energy, and Planning in the Welsh government, expressed enthusiasm about the partnership, stating, “Cadence’s exciting partnership with Welsh Government and CSA Catapult not only reinforces the international confidence in Wales’ world-class semiconductor sector but also demonstrates our commitment to working with businesses to create the right conditions and opportunity for growth, investment, and job creation here in Wales.”

Martin McHugh, Chief Executive Officer at CSA Catapult, highlighted the significance of the new semiconductor design centre, emphasizing its role in addressing the skills gap and strengthening the UK’s leadership position in chip design. The collaboration between Cadence, Welsh Government, and CSA Catapult is expected to create new career opportunities for graduates in high-tech industries and foster international partnerships that will further boost the UK semiconductor ecosystem.