Strategic Acquisition for Defence Capabilities
The UK’s Ministry of Defence (MoD) has acquired a critical gallium arsenide (GaAs) manufacturing facility in Newton Aycliffe to ensure the production of semiconductors essential for military applications. The plant, now named Octric Semiconductors UK, was purchased from Coherent to prevent its closure, safeguarding the UK’s only secure source of GaAs semiconductors, which are crucial for enhancing military technologies, including fighter jet capabilities.
Investment in Future Technology
The MoD plans to invest significantly in the facility to boost its production capabilities and develop advanced chips, reinforcing the UK’s defence technology framework. This acquisition comes amidst a trend of foreign takeovers and closures within the UK semiconductor industry, positioning the government to strengthen domestic production and reduce reliance on international suppliers.
Commitment to National Security
Defence Minister John Healey emphasized the importance of semiconductors for military operations, stating that this acquisition demonstrates the government’s commitment to supporting British defence production and national security.
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