UKs Octric Semiconductor to get 200 million boost

Octric Semiconductors Ltd., a wafer fab located in Durham, England, is poised to receive a substantial investment of £200 million (approximately US$250 million), as reported by The Telegraph. This injection of funds is part of a 10-year Ministry of Defence spending initiative aimed at bolstering the compound semiconductor factory, which was acquired by the UK government in 2024.

The financial package includes £20 million allocated for the initial acquisition of the plant. Moreover, the UK government has expressed willingness to explore co-ownership opportunities with other investors. The strategic importance of the compound semiconductor manufacturing capacity for meeting UK defense needs has been underscored in the report.

Octric Semiconductors Ltd. has outlined ambitious plans for expansion, which involve the incorporation of additional manufacturing process platforms and products. The company is actively seeking engineers with expertise in compound semiconductors like GaAs, GaN, and InP. In a statement shared on LinkedIn, the company expressed optimism about the future, citing the substantial ongoing investment as a catalyst for growth. Octric positions itself as the foundry for the next generation of semiconductors.

This development comes on the heels of a similar announcement from Vishay Intertechnology in Newport, Wales, as the UK endeavors to safeguard and nurture its chipmaking capabilities. The 310,000 square feet facility, situated in Aycliffe Business Park, was previously acquired by II‑VI (now Coherent) in 2017. However, the plant faced uncertainty following a global review by the company in 2024, prompting the intervention of the UK government, which acquired it for a reported sum of around £27 million.

With the infusion of £200 million and a clear vision for expansion and innovation, Octric Semiconductors Ltd. is poised to play a pivotal role in advancing semiconductor technology in the UK. The commitment to enhancing manufacturing capabilities and fostering expertise in compound semiconductors reflects a strategic approach to meeting the evolving demands of the defense sector and beyond. As the company charts a new trajectory with significant investment backing, the semiconductor industry in the UK stands to benefit from renewed focus and momentum.