Rebecca Evans
Welsh Labour · Wales
“So, nothing's happening on the ground in Wales in relation to Great British Energy at the moment, but I think it's really positive that we're having those discussions in relation to the opportunities here in Wales.”
“I'm really keen to understand how we break down the barriers for adopting the innovation that's happening in Wales and making sure that it's available to the NHS as quickly as possible. I know that Jeremy Miles is very interested in that as well.”
“As Luke Fletcher says, the Great British Energy Bill was introduced to the House of Commons by the UK Government in July of this year. Essentially, the Bill itself only seeks to go about establishing Great British Energy as a publicly owned company.”
“As well as highlighting business success—and we’ve heard some great examples around the Chamber this afternoon—they also encourage consumers to shop locally and support the small businesses within their communities.”
“The bank does operate in accordance with regulatory requirements and their diligence generally matches or exceeds that carried out by other lenders.”
“I'm very grateful for that question this afternoon. It builds on the debate that Mike Hedges led in the Senedd very recently, which included a really strong focus on the life sciences industry and how it's scaling at pace. It's one of our most exciting and dynamic growth sectors in Wales, turning over more than £2.85 billion a year.”
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“So, we are investing £1.7 million a year until next year in the social enterprise sector, to provide specialist business advice to support the 'Transforming Wales through social enterprise' vision, and that is about putting social enterprises at the heart of a fairer, more sustainable and more prosperous Wales. At that visit, I did have the opportunity to talk to Cwmpas and Social Business Wales about how businesses can best address the challenges that they're facing, particularly in regard to national insurance contributions. As a first step, I would encourage those businesses in that sector to engage with Social Business Wales and seek out their advice and support.”
“I did have the pleasure of visiting Thrive in Port Talbot last week, to celebrate Social Enterprise Day, which is an incredible social enterprise. They deliver high-quality commercial cleaning and catering services to businesses and organisations. But the special thing about that is that all of the money that is raised is reinvested in targeting violence against women and supporting people who have survived those awful circumstances. So, that's just one example of the great work that is going on, and, as I say, we're using our levers.”
“Again, I'm grateful for the question. It's been said before, of course, that the Chancellor faced a really difficult set of circumstances when she came into post and had to develop her first budget, and will have made decisions that she certainly wouldn't have wanted to, or even expected to have to take. But, in doing so, she has been able to balance the books and put the country on a firm and steady footing, which was the intention. And there were difficult choices made along that road, I know. So, for our part, the Welsh Government is exploring how we can best use the levers that we have. So, I've already mentioned some of the support that is available through Business Wales. That, of course, will also be available through Social Business Wales to social enterprises.”
“Welsh Government officials regularly discuss a range of matters with the social enterprise sector. Our Social Business Wales service is on hand to provide specialist support to offer information, guidance and support to social enterprises across Wales.”
“Obviously, I would highlight the Development Bank for Wales and the great work that is going on there, particularly so through the micro-loans fund, which is supporting over 280 different businesses a year with over £8 million of micro-loan finance, and that’s between £1,000 and £50,000. And, of course, the work of Business Wales as well, I think, is instrumental. We know that businesses, when they start up, if they go to Business Wales and seek support, they are twice as likely to still be trading five years later, and I think that really speaks to the value of the Business Wales offer that we have here in Wales. So, if businesses are perhaps struggling at the moment or just thinking about how they can expand and grow, then absolutely I would encourage them to speak to a Business Wales adviser.”
“But in specific reference to the national insurance contributions, the UK Government analysis showed that, as a result of all of the measures in the budget, 865,000 UK businesses will pay no national insurance contributions at all and more than half of all employers' national insurance contribution liabilities will see either no change or will actually gain overall next year. So, I do think that that has been lost in the debate that's been had in relation to national insurance contribution. For our part, though, we're very much focused on using the levers that we have to support small businesses and microbusinesses here in Wales.”
“Well, I'm very grateful for the question and for the opportunity to highlight Small Business Saturday and encourage all colleagues to celebrate it, as I know that you have been—I've been following your social media adventures and your early start on your Christmas shopping in Newtown as well. So, absolutely, I hope that all colleagues follow your sterling example in that space. There have been difficult trading conditions for small businesses in recent times with the cost of living and, of course, the impact of inflation.”
“Micro and small businesses represent 98.4 per cent of all businesses in Wales and are the lifeblood of our communities. The Welsh Government remains committed, as it always has been, to supporting micro and small businesses and will be actively promoting Small Business Saturday through the Business Wales digital channels.”
“Again, that offers a really important platform for collaboration and for learning as well. So, whilst we’re very keen to learn from other parts of the world, we actually have an awful lot that we can share as well.”
“That’s very clear to us, and I hope I’ve been able to set out some of the work that’s been going on in terms of schools and colleges and universities to support the development of those particular sectors. We are involved in such a wide range of international collaborations where we’re able to learn from other countries and share our own knowledge in this space. I’ve mentioned the importance of Horizon Europe, but we’re also involved in SEMI Europe—we’ve been a member since 2001—and that again allows us to get some really good international visibility for the community here in Wales through trade events, sponsorships, speaking opportunities, and so on. And of course there’s the European Semiconductor Regions Alliance, and Wales is one of the 27 founding regions of that alliance.”
“I’m very grateful for those points. The sheer number of examples that Mike Hedges was able to give just shows the potential for us here in Wales. Because of course, semiconductors are used in automotive, communications, healthcare, defence, aerospace, security, energy efficiency, robotics, the internet of things—actually, these are all areas in which Wales excels, and these are a number of the areas that the UK Government has identified in its industrial strategy. It is part of a wider picture in terms of our economic offer and our opportunities for the future. I think that that is very important. We’re not competing with Taiwan, because we’re operating in a different part of the sector, but we certainly learn from the work that they’ve done in Taiwan and the importance of supporting the skills agenda.”
“I’ve mentioned some of the work that is going on at Techniquest, some of the work that these businesses do with schools and so on to try and have those early conversations. As you said, it has to be something that young people understand that there are careers in, but equally I think there’s work to do with parents as well, so that when their child goes home and says, ‘I want to be involved in the semiconductor industry in future’, the parent knows that this is actually a really exciting thing to hear from their child and finds ways to support them. Because again, it’s so new to so many people and we just need to keep raising the importance of the sector and the absolutely fantastic roles that people can have.”
“I’m really grateful for those points, and particularly about the importance of the visibility of the sector. I mentioned I was talking to people from the semiconductor industry yesterday, and a really important point was made that people in Singapore know more about semiconductors in Wales than people in Wales know about semiconductors in Wales. The fact it is such a growing and exciting industry perhaps isn’t yet fully understood. I think there’s definitely work for us to do in terms of just showcasing the incredible careers and the exciting innovations that people can be involved with in this particular sector. So, I think there’s work for us to do as Government, but actually I think it’s something that the cluster and the individual businesses themselves are actually working very hard at.”
“I would endorse everything that you've said about making sure that there are opportunities for all here; this is a real sector of growth, it's a really exciting sector, but it should offer opportunities very widely, and we will absolutely do everything we can to work to deliver that. In terms of research and investment, again, it's really important that Wales gets, I would say, more than its fair share in terms of research and investment. I was pleased with the opportunities that might come through Horizon, for example. So, I think, again, there are lots of further opportunities for growth and for good announcements in this particular sector.”
“I'm very grateful for those questions, particularly recognising the potential that there is here in Wales. On that point in relation to Taiwan, we are operating in different markets. The products that are made in Taiwan are from large-volume silicone production facilities; these are huge—tens of billions of dollars of investment goes into those facilities. Our work is very much more in that very specialist niche end of things, and that's where we excel. So, we're not directly competing in that particular sense, and I don't think that that's a market that we would want to move into; I think the very specialist end of things is definitely the one that is working for us.”
“Obviously, it wouldn't be for the Welsh Government to seek to unduly influence decisions that the UK Government might wish to make in terms of its funding, but please be assured that we will be very clear with the UK Government about the importance of the compound semiconductor industry here in Wales, its potential for growth, its importance to the wider supply chain and the opportunities that we have here, bearing in mind everything that I've said to colleagues about the importance in terms of skills and how prepared we are to continue to scale up here in Wales.”
“I'm very grateful to John Griffiths for his comments. I know of his support for the compound semiconductor sector, which is right on his doorstep and, of course, will be incredibly important to so many constituents in Newport East. I'm aware of the application that has gone in to the UK Government in respect of funding that Vishay aims to secure.”
“We published our innovation strategy earlier at the end of last year, and that had a very clear ambition to significantly increase the funding that we get through Innovate UK beyond just a Barnett share.”
“I can feel the Deputy Presiding Officer's eyes on me, so I won't go into too much detail, but the report, for example, doesn't recognise the significant increase in the take-up of degree apprenticeships in Wales. You asked for the latest figures. The latest official statistics for apprenticeships show that, as of September 2023, there were 55,095 starts in this Senedd term, but, clearly, the programme keeps on delivering, so I would estimate that today it would be closer to 70,000. So, we are making strong progress. Clearly, there's more work to do in that space, but we're absolutely committed to that. And then we're also committed not only to getting a Barnett share, but, actually, to go much further in terms of the money that we get through Innovate UK.”
“They have worked through the Sparkle Appeal in Gwent, and through that they fund the Tech Club, which supports disabled Welsh children and children with developmental difficulties, and it helps them to learn through technology, as well. So, there are lots of really important opportunities to engage with young people. On the point in relation to the apprenticeship report, the Welsh Government doesn't necessarily recognise some of the assumptions on which the report is based. Since 2021, annual funding for apprenticeships in Wales has increased from £128 million to over £143 million this year, despite the fact that European Social Fund funding actually came to an end in 2024-25. I can provide a bit more detail. I don't want to go through it all.”
“So, at Cardiff University now, you can study an MSc in compound semiconductor physics, and that will obviously put you in a fantastic place to seek employment in this sector. And this sector has been here for 40 years and the investments being made in this sector are huge. You are on course for a fantastic career when you undertake these courses. We're also doing lots of work to try and engage with people at the youngest age, so that kind of STEM outreach in schools as well. For example, at Techniquest, not very far from here, there is the KLA Lab. That's funded by the KLA Foundation, and they run workshops there to inspire young people in Wales to pursue careers in STEM. The KLA Community Zone project with the Newport Dragons, again, looks to raise awareness of STEM across the region.”
“Of course, we've got the Development Bank of Wales as well and that provides support through seed funding or equity and loans to support both start-ups and early-stage businesses. So, again, if people have great ideas for which they want help to get off the ground, I would absolutely recommend a conversation with the development bank. The points around skills are so important. I've mentioned some of the things that have been done with the WJEC and with the colleges in Wales, but I'd also just point to the fact that over recent years all the south Wales universities have launched specialist graduate and undergraduate courses to support the semiconductor industry, and those of course are in addition to the general electronics courses, which include semiconductor modules.”
“So, in addition to upskilling staff in existing companies, including in the compound semiconductor sector, funding will attract and nurture up to 15 spin-outs from academia to set up and commercialise their ideas in south Wales, and we would expect some of those to be probably in the compound semiconductor sector. The first call was launched in August of this year, and successful applicants will benefit from the expertise and facilities available at Cardiff University's Institute for Compound Semiconductors and Swansea University's Centre for Integrative Semiconductor Manufacturing. So, I think there is great opportunity for up to 15 spin-outs from academia right here in Wales to be entering this particular arena.”
“I'm very grateful for those questions. So, I'll begin with the point about the importance of not only attracting those big inward investment propositions, but then actually allowing the space and the support for our own start-ups, if you like, to develop here in Wales, and we do have some really good support available. In November 2023, Cardiff University in partnership with Swansea University was awarded £4.1 million by the Engineering and Physical Sciences Research Council, and that was to deliver a place-based impact acceleration account.”
“And then, just finally, in relation to the investment zones, I think that that's a really important part of our support for the sector and for the region more widely. UK Government officials, alongside Welsh Government officials, are currently appraising the initial parts of the investment business cases and they're working to establish timescales for fully establishing the investment zones, but I think the fact that the UK Government has identified the semiconductor industry as an industry of special interest and special focus for the future bodes very well for the sector and the cluster here in Wales.”
“These are relatively small-scale enterprises, but they're high value and they can then make a big difference to the local economy. So, I think the fact that some of these businesses have been here doing this work for 40 years shows how important it is to have the support that they have here, but also the wider ecosystem that we're able to provide. In terms of the impacts of Ukraine on the supply chain, I have had discussions with officials about this and we're not aware of any challenges posed by the situation in Ukraine in relation to the supply chain here. Equally, we're not aware of any semiconductor products made in Wales that are involved in the situation in Ukraine either.”
“So, there are companies such as Deregallera in Caerphilly and they're designing new electric motors and control systems, which are replacing internal combustion engines, and there are great opportunities to work in that particular sector as well. So, we are working tirelessly really to make sure that we retain the value of this particular industry here in Wales, although those points about the international picture are really important. In terms of Taiwan, Taiwan specialises in the large-volume silicon production facilities, typically with tens of billions of dollars of investment, but that's not the kind of market that we're competing in in Wales—our niche really is compound semiconductors. The cluster in south Wales is currently focused on different stages of the manufacturing process for chips and the equipment to make them.”
“And we do that both in terms of the WJEC work, the work that we've been doing with the colleges, but also in terms of graduate opportunities as well. The Engineering and Physical Sciences Research Council centre for doctoral training in compound semiconductor manufacturing is led by Cardiff University. That's in partnership with the University of Manchester, the University of Sheffield and University College London, again, making sure that the sector has the skilled workers that it needs. In terms of opportunities, there are definitely more opportunities in terms of growing the supply chain. And a really good example of a potential green opportunity for Wales is in the electric vehicle supply chain.”
“And Open University Cymru also offers degree-level apprenticeship programmes in this space. By 2020, CSconnected, in partnership with training providers, had implemented a continuous qualification pathway with appropriate semiconductor content to meet the needs of the industry. I had the opportunity to talk to representatives from the semiconductor industry yesterday, and I was expecting them to raise the issue of skills and say that they couldn't get the skilled people that they needed, but the comments were actually the opposite of that: they were very pleased with the quality of the people coming through, and that's because we've worked so closely with the sector to ensure that we've got people with the skills that they need.”
“And the points made about skills are incredibly important and ones that I know are one of the reasons that businesses come to Wales, because as part of that long-term approach to this particular sector, we have been investing in skills and in developing that pipeline of talent that can service the compound semiconductor industry in Wales. So, we have introduced a suite of qualifications particularly for the sector. We've done that alongside partners in the WJEC. They've launched a range of technical manufacturing qualifications, and there are also apprenticeship-level entry opportunities aligned to the needs of the cluster, and they're offered at a range of our colleges, including Cardiff and Vale, Merthyr, Bridgend, Coleg Gwent and Coleg y Cymoedd.”
“I'm very grateful for those questions this afternoon, and particularly for the warm welcome in relation to the recent investment by both Vishay and KLA. I think that there is so much that all of us across the Chamber, regardless of party, will have to celebrate in these announcements and in the strength of the compound semiconductor industry that we now have in Wales. And it hasn't happened overnight. As I mentioned in the statement, this is the result of a decade of investment in the sector, promoting the sector internationally, investing in business and investing in skills.”
“KLA has invested over $100 million into its new facility to support both R&D and manufacturing activity in Wales. It has an extensive supply chain, spending over £60 million each year within a 100-mile radius of Newport, buying machined parts, wiring harnesses, electrical components and sub-assemblies. We need to grow that supply chain in Wales to ensure the benefits of the sector are widely felt. We're now, after a decade of seeding the cluster, reaping the rewards of our commitment, which we will continue to drive forward. These three substantial announcements demonstrate that we remain committed to investing in and supporting the cluster through the exemplar model of collaborative working and the ability to support green jobs and growth—a clear commitment for the Welsh Government.”
“Centre 7 at Cardiff Gate is a 51,000 sq ft building that will act as a hub to attract and accommodate semiconductor businesses and facilitate further collaboration. Work to the building continues to support the prestige of the facility domestically and internationally, which has already reaped rewards. I am pleased to announce the occupation by the first two tenants—US corporation Microlink Devices, and CS Connected, the cluster organisation for the compound semiconductor community. We expect that this hub will also be a centre for future investment in semiconductor software and design, and we have active projects in this area. Semiconductor jobs are sticky, with the main sites in Wales having been here for 40 years or more, albeit under different ownerships.”
“In the meantime, our international strategy continues to showcase the compound semiconductor sector, recognising that it's an area in which Wales excels. Indeed, the collaborative culture of the cluster has proved to be a magnet for inward investors and academic collaborations. Cardiff University hosted a prestigious international technical conference in October on semiconductor power devices, and we will welcome an inward mission by Canadian semiconductor companies in the spring—all important ways to shine a global spotlight on Wales. It is, however, essential that Wales offers world-class facilities for those inward investors landing in Wales for the first time and for indigenous companies wanting to grow. I'm pleased to announce that, earlier this year, Welsh Government invested in such a facility.”
“This model will ensure the economic benefits of the compound semiconductor cluster are felt right across Wales, not just in the south-east. I'm pleased to report that, following the autumn statement last month, the UK Government has confirmed the continuation of the investment zone programme across the UK. The presence of this world-leading cluster, including the research capability of the CS Catapult and our universities, was a key driver in the Welsh Government and UK Government’s joint decision that Cardiff and Newport offered the potential to host an investment zone in Wales. Cardiff capital region are developing their proposals for how it will use the £160 million of available funding. I look forward to receiving details of how they propose this investment will create additional jobs and drive economic growth across the region.”
“It's pioneering the reduction of building emissions for the semiconductor industry with funding from the former Higher Education Funding Council for Wales. The centre is an active member of the semiconductor cluster and has research agreements with industrial members such as Vishay, which counts a number of Swansea alumni among its executives. I welcome the significant investment by both Vishay and KLA, not only because of the long-term commitment to Newport, but also because of the confidence it demonstrates in our holistic and collaborative approach to economic development in Wales. This collaborative approach across public, private and academic sectors, as well as across all tiers of Government, is the model for economic development of the future.”
“Cluster members invest heavily in R&D and business practices targeted to achieve net zero by 2050. They are major employers of well-paid science, technology, engineering and mathematics apprentices and graduates. They export more than 95 per cent of their products and have higher productivity than in manufacturing generally. This is a key enabling technology, with strong global growth projections. Compound semiconductors underpin green growth in nearly every sector, from efficient motors for electric vehicles to controlling wind turbines, LED lighting, and solar panels to transform buildings into power stations. A good example of this is a £2.5 million net-zero research project at Swansea University’s centre for semiconductor materials.”
“Meanwhile, a second US-owned company, KLA, has made excellent progress with the construction of its new European headquarters at Imperial Park. With Welsh Government investment in the grid infrastructure at the site, the 215,000 sq ft, $100 million development is creating a state-of-the-art innovation centre and manufacturing facility, and will include clean rooms for research and development and manufacturing. Recruitment of up to 750 employees is already under way. We and Cardiff capital region are actively working with KLA on its future plans, including potential expansion opportunities within the region. This compound semiconductor sector showcases how our commitment to green growth can support the wide range of benefits we are determined to deliver for the Welsh economy.”
“Diolch. I'm pleased to update colleagues today on a number of investments and support measures in the compound semiconductor sector in Wales. The first of these is at Vishay Intertechnology Inc, one of the world's largest manufacturers of discrete semiconductors and passive electronic components. It's announced that, with Welsh Government support, it's investing £51 million in Newport Wafer Fab, the largest UK semiconductor facility. This will bring in new product ranges and secure the future of skilled workers in Newport. This is welcome news for staff at the plant, as well as Members of the Senedd from the Newport area, following ownership turbulence in recent times. The company plans to transform the site to support the transition to electric vehicles, aerospace and other advanced manufacturing applications.”
“Absolutely I would encourage people to visit Abergavenny in the run-up to Christmas, but actually all year round, because it is an absolutely beautiful place to visit—so many independent shops that you just wouldn't be able to find elsewhere. And it's absolutely somewhere that we would encourage people to visit for all kinds of reasons, but especially so now to experience some of that wonderful community spirit that your colleague Natasha mentioned in her contribution.”
“But I just want to reassure colleagues that, as I said in my initial answer to the question, we are engaged with policing and community safety partners on those broader impacts in relation to the wider community.”
“I'm very grateful for the question, and, again, for that recognition of the bravery of those responders who were at the scene, but also the generosity of spirit of the community, which has absolutely rallied around, as well, which is absolutely wonderful. The question specifically laid was in relation to business support, so, as I said, the key point of contact would be through Business Wales to explore with a Business Wales adviser what kind of plan can be put in place in terms of recovery from the incident. But in terms of those wider conversations, those would be led by other colleagues who have the responsibility for local government and also the fire and rescue service.”
“They could also provide some signposting to a specific Business Wales adviser, who can help with some more detailed recovery plans as well. Those might include cash flow, liquidity and effects from disrupted trading. They might also be able to help them find alternative business space as well. That might be offices or warehouses, for example, to help the businesses continue trading and recover from the fire damage too. So, as I say, in the first instance, the calls should be to Business Wales, who can talk about the recovery support that's available.”
“I'd very much like to associate myself with the comments from Peredur Owen Griffiths in relation to commending the work of South Wales Fire and Rescue Service, and, of course, the other emergency services and agencies, for their very swift and effective response. In relation to the support that can be provided, the Development Bank of Wales is available to support businesses that have been impacted and who may be able to benefit from the Wales micro loan fund that offers fast-tracked loans between £1,000 and £50,000. So, I would encourage any business in the first instance to make contact with the Business Wales helpline. They'll be able to provide some practical information and advice, or they could signpost on to relevant agencies and organisations who might be able to provide support.”
“We sympathise with all those affected by the fire. We're engaged with policing and community safety partners on any broader issues impacting on the community relating to the incident. In response to the damage and disruption caused to businesses by the fire, Business Wales can provide post-fire recovery business support.”