News: Suppliers
5 June 2026
South Wales cluster CSconnected issues SIPF program impact report
The South Wales-based compound semiconductor cluster CSconnected has published its Strength in Places Fund (SIPF) impact report 2026, marking the conclusion of a transformative program that has established South Wales as a globally recognized hub for compound semiconductor innovation.
Supported by the Strength in Places Fund (UK Research and Innovation) and Cardiff Capital Region, the not-for-profit CSconnected organization is the world’s first compound semiconductor cluster, and unites leading companies, research institutions and government partners to drive innovation, economic growth, and global leadership in semiconductor technology.
The report marks the conclusion of the Strength in Places Fund program, a £43m UK Research and Innovation-backed initiative designed to accelerate high-growth regional clusters through investment in research, advanced manufacturing and skills.
Its findings demonstrate the scale of that investment, with the cluster now supporting £436m in Welsh gross value-added (GVA) and 3140 jobs across Wales, alongside £480m in exports representing more than 90% of output.
Since 2021, the program has accelerated growth across research, manufacturing, skills and supply chain development, strengthening the UK’s sovereign capability in critical semiconductor technologies underpinning 5G, AI, electric vehicles and future electronics.
“The SIPF program has enabled far more than the sum of its investments. It has brought together industry, academia and government to create a coordinated, high-performing ecosystem with global relevance,” says CSconnected’s managing director Howard Rupprecht.
“This report demonstrates not just what has been achieved, but what is now possible. We are moving into the next phase with clear ambition: to grow cluster revenue to £1bn and support 6000 jobs by 2030.”
Over the five-year period, the cluster has delivered significant growth:
- direct employment increased by 36% to 1914 jobs;
- total Welsh jobs supported rose by 51% to 3140;
- total Welsh GVA nearly doubled, reaching £436m;
- annual sales grew to £531m.
The report also highlights strong productivity and value for money, with cluster productivity increasing by more than 60% since 2020 and cumulative GVA reaching about £1.3bn over that period.
Alongside economic impact, SIPF has driven major progress in skills and talent development. In 2025 alone, more than 12,000 individuals local to South Wales were engaged through outreach programs, while over 700 professionals have taken part in industry-aligned training courses designed to upskill and reskill the workforce.
The program has also strengthened the UK supply chain and attracted inward investment, with new organizations joining the cluster in 2025 and increasing international interest from partners across Europe, North America and Asia.
As global demand for semiconductors accelerates and geopolitical pressures reshape supply chains, the report positions South Wales as a critical component of the UK’s long-term industrial strategy.
Looking ahead, CSconnected will focus on deepening UK-wide supply chain integration, expanding international partnerships and supporting emerging market opportunities across 6G communications, AI, clean energy and advanced manufacturing.
The full SIPF Impact Report 2026 can be downloaded here.
CSconnected supporting £436m for Welsh economy and 3140 jobs
South Wales-based compound semiconductor cluster celebrates tenth anniversary
