A TECH giant is to open up a new state-of-the-art manufacturing facility at Newport’s former LG site.

IQE, which is based in St Mellons, has announced it is to move into the vacant site in Coedkernew as part of the Cardiff Capital Region City Deal.

The site at Imperial Park was sold by the Welsh Government to the ten councils involved in the deal, including Newport, Torfaen, Monmouthshire, Blaenau Gwent and Caerphilly, for a £38 million makeover.

And now a new compound semiconductor wafer foundry is to be set up at the site as part of the Welsh Government’s commitment to create the world’s first ‘semiconductor cluster’.

The Welsh Government has said the cluster could attract £375 million of private sector investment into the area, while creating up to 2,000 highly-skilled jobs and hundreds more in the supply chain.

Announcing the news, Wales’ economy secretary Ken Skates said: “It is hugely encouraging that Welsh Government’s initial £12 million investment in developing the cluster back in 2015 has been the catalyst for today’s announcement that IQE plans to expand into the City Deal’s new facilities.

“Not only is it extremely exciting news for the Welsh economy, securing additional jobs and investment, but it further cements Wales as a world leader in this state of the art technology.

“With the world’s first compound semiconductor cluster located here in south east Wales, we are punching well above our weight in developing technology which not only plays an increasingly vital role in the way we live our lives today but will drive innovation which will shape the world we live in tomorrow.”

Compound semiconductors used in circuits offer lower power consumption and higher operating speeds than traditional silicon-based material.

IQE chief executive Dr Drew Nelson said: “Compound semiconductors are rapidly defining 21 century technologies and Wales is uniquely positioned to be centre stage of this global, high-tech industry sector.

“This dedicated compound semiconductor facility between Cardiff and Newport will act as a key component of the burgeoning cluster that is already cementing Wales’ reputation for technology leadership.”

He added the project was “a shining example of what can be achieved through collaboration”.

“The Welsh and UK governments, along with the ten councils that form the Cardiff Capital Region, have worked closely with academic institutes and industry to build an innovation infrastructure that will support and nurture the region as a true global player in new and emerging technologies,” he said.

“The facility will become the base for a number of compound semiconductor related activities, including IQE, where we expect to rapidly expand our production capacity to meet increasing demand for our technology.”

The former LG site was intended to be the largest-ever investment in Wales when it was announced by then-prime minister John Major in 1996. But the promised millions of pounds in investment and thousands of jobs never materialised.