Proactive Investors - One of the UK’s last semiconductor plants has been rescued from collapse by the government.
After warnings from the Ministry of Defence about the plant’s future, the government confirmed on Friday it has bought the business from US company Coherent (NYSE:COHR).
Reports suggested that the deal is worth £20 million and will save 100 jobs at the firm.
A statement from the MoD said the business, now renamed Octric Semiconductors UK, is the country’s only producer of gallium arsenide semiconductors, making it “critical to the defence supply chain and major military programmes and exports”.
John Healey, the Defence Secretary, visited the site this morning to confirm the acquisition.
“Semiconductors are at the forefront of the technology we rely upon today, and will be crucial in securing our military’s capabilities for tomorrow, he said.
A statement from the Ministry of Defence said: “This strategic investment will ensure the facility is capable of producing gallium arsenide semiconductors as well as more powerful semiconductors in the future, which will include the latest technology.
“This government recognises the strategic importance of semiconductors as a critical technology for the future of the UK and a significant enabler of the government’s growth and clean energy missions.
“Work has already started to implement best practice governance that will ensure appropriate financial oversight to secure the company’s future success.”
In 2021, the MoD nationalised Sheffield Forgemasters, a supplier of steel components to the Royal Navy for security reasons.
Coherent had warned that a decision by Apple (NASDAQ:AAPL) to stop using the company as a supplier “places the ongoing viability of the business in doubt”.