A new joint venture between Welsh Government, Compound Semiconductor Applications (CSA) Catapult, and Cadence Design Systems, Inc. will address long-term skills needs within the semiconductor design sector and support the industry’s growth by providing critical design services to SMEs and scale-up companies across the UK.
The dedicated semiconductor design center, which has received £2.5 m in Welsh Government investment, funding from Cadence, and support from CSA Catapult, will create over 100 new jobs for graduate students in the next five years, contribute an estimated £34 m to the UK economy and help deliver the UK government’s industrial strategy. This dedicated design center will build vital semiconductor design skills, grow the industry and international partnerships, and increase sovereign capability.
The new company aims to become a leading provider of semiconductor design services, supporting key industries such as automotive, aerospace, space, telecoms, defence, and AI.
The new venture will leverage Cadence’s expertise and AI-driven IC design solutions, CSA Catapult’s advanced facilities and testing capabilities, and Welsh Government’s financial support to create a sustainable, high-growth business. This partnership will drive innovation, create skilled jobs, and enhance the UK’s semiconductor ecosystem while addressing critical industry needs.
The UK has significant strengths in chip design, but to compete globally it needs more semiconductor design engineers. Global semiconductor revenues will grow to $1tn by 2030. According to the Department for Science, Innovation and Technology’s sector study, UK semiconductor companies said that integrated circuit design engineers are experiencing amongst the most acute shortage of skills. The new venture will build an employee-engaged culture where all can benefit from the success of the business.
This strategic joint venture will strengthen the existing design community, working with universities, start-ups, and small businesses on new semiconductor projects. It will build new international partnerships and further investment, helping to deliver opportunities for semiconductor companies across the UK to collaborate with European and US chip initiatives.
Over the next five years, the semiconductor design center will provide training and a career path for graduates, apprentices, and career changers to enter the semiconductor industry. From its base in Center 7 in Cardiff Gate, there will be opportunities for graduates in electronic and electrical engineering, computer science, and physics, helping to bridge the gap between university education and real-world job opportunities.
Speaking about the Cadence investment, Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, said: “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.
“The Design Center will diversify the range of capabilities the sector here can offer, complementing the manufacturing capacity and capitalizing on the growing demand for semiconductor microchips. At the heart of this joint venture is the recruitment and training of local talent, providing well-paid careers for graduates and creating a robust pipeline of skilled professionals in high-tech industries that directly support our Net Zero Action Plan.”
“Cadence is committed to promoting economic development in Wales,” said Rebecca Dobson, corporate vice president for EMEA at Cadence. “We’re investing to support the high-tech industry in Wales by creating jobs and committing to recruiting and developing top talent, which is crucial for continued semiconductor industry growth and innovation. It’s a win-win for Cadence, the industry, and Wales.”
Martin McHugh, Chief Executive Officer at CSA Catapult said: “The creation of the new semiconductor design center is a significant milestone for the UK semiconductor industry. We are delighted to be working with Cadence and Welsh Government to create a world-leading facility, creating 100 new jobs in South Wales. Through the joint venture, we can address the semiconductor skills gap and strengthen the UK’s leadership position in chip design. It builds on the success of the compound semiconductor cluster in Wales and will create new opportunities for the entire UK semiconductor ecosystem. There will be new career paths for graduates of electrical engineering, computer science, and physics. With the support of Cadence and Welsh Government, the new center will create international partnerships and further investment to the UK.”