News: Suppliers
21 April 2026
CSconnected supporting £436m for Welsh economy and 3140 jobs
The latest annual report from CSconnected confirms that the compound semiconductor cluster in South Wales continues to expand its economic contribution, now supporting £436m of gross value-added (GVA) and 3140 jobs across Wales.
Produced by the Welsh Economy Research Unit (WERU) at Cardiff University, the independent report assesses the cluster’s performance in 2025 and tracks its development since 2020, when the Strength in Places Fund (SIPF) program of the UK Research and Innovation (UKRI) began.
Sustained growth in employment and economic impact
In 2025, the cluster directly employed 1914 people, with a further 1226 jobs supported across Wales through its wider economic footprint.
Total Welsh employment linked to the cluster increased by 14% year-on-year from 2748 in 2024 to 3140 in 2025.
The sector generated £267m in direct GVA, with an additional £169m supported elsewhere in Wales, bringing total Welsh GVA impact to £436m, up 19% year-on-year.
This growth has been achieved during a period marked by global semiconductor volatility and continued pressure on UK manufacturing employment.
“The compound semiconductor cluster continues to show resilience and sustained growth,” notes professor Max Munday of Cardiff University, the report’s lead author. “While other parts of manufacturing have faced considerable challenges, this sector has expanded employment, increased productivity and strengthened its wider economic contribution. The modelling shows both direct growth and a deepening of economic effects across Wales.”
Export-led revenue supporting the Welsh economy
Exports remain central to the cluster’s contribution. In 2025, companies recorded £480m in exports, accounting for over 90% of industrial output and representing about 2.8% of total Welsh goods exports. Annual sales reached £531m.
Because most sales are made internationally, the cluster brings significant external revenue into Wales. This supports further activity across supply chains and local services.
Over the past five years, export intensity has remained above 90%, ensuring that sector growth translates into sustained economic value for Wales.
Average salaries remain high at about £66,000, well above the Welsh average, with more than 95% of employment full-time.
Five years of measurable progress
Since 2020, the cluster has expanded significantly. Total Welsh jobs supported by the cluster have risen by 51% from 2085 to 3140. Total Welsh GVA supported by the cluster has increased by 153% from £172m to £436m.
These figures demonstrate not only growth in core activity but a strengthening of the cluster’s wider economic footprint across the region.
National impact, anchored in Wales
While the cluster’s core footprint is in South Wales, its economic influence extends across the UK.
In 2025, activity linked to the cluster supported £567m of GVA across the UK economy (up 31% from £434m in 2024) and 4392 jobs across the UK.
Around 77% of this GVA remains in Wales, up from 59% in 2024, showing that a growing share of value is being retained within the Welsh economy.
Each direct job in the cluster now supports a further 1.29 jobs across the UK, contributing to a total of 4392 jobs nationwide.
Transitioning to the next phase
2025 marked the completion of the original UKRI Strength in Places funding period for CSconnected. Over five years, the program has strengthened collaboration between industry and academia, supported investment, and accelerated cluster growth.
“Five years on from the launch of the Strength in Places investment, the results are clear. Employment has grown, productivity has increased and the cluster’s economic impact has nearly doubled,” says professor Wyn Meredith, chair of CSconnected and the SIPF program. “We’ve built a stronger and more connected cluster, with real economic impact across Wales.”
Looking ahead
CSconnected’s ambition to 2030 includes:
- growing cluster revenue to £1bn;
- expanding skilled employment to 6000 people; and
- capturing greater value across the regional supply chain.
“The progress we’ve seen over the past five years gives us a strong foundation for the next phase,” says CSconnected’s managing director Howard Rupprecht. “Our focus now is on scaling capacity, strengthening regional supply chains and developing the skills needed to support long-term growth. The opportunity ahead is significant, and we want to ensure Wales captures as much of that value as possible.”
With global demand for advanced semiconductor technologies continuing to grow, South Wales is well placed to build on its foundations and increase its contribution to both the Welsh and UK economies, it is reckoned. Initiatives such as the Local Innovation Partnership Fund (LIPF) and the South Wales Investment Zone are expected to support this next phase, particularly in areas such as supply chain development, skills and regional value capture.
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