The UK government has acquired a key semiconductor manufacturing site in Newton Aycliffe, County Durham, in a move to safeguard defence supply chains and support the Armed Forces.
The facility, now operating as Octric Semiconductors UK, is the only secure site in the country capable of producing gallium arsenide semiconductors – critical components used in advanced military platforms, including modern fighter aircraft.
Defence Secretary John Healey visited the plant following its acquisition from former owner Coherent Inc. The deal is expected to protect up to 100 skilled jobs in the North East while securing a vital part of the UK’s defence industrial base.
“Semiconductors are at the forefront of the technology we rely upon today, and will be crucial in securing our military’s capabilities for tomorrow,” Healey said. “This acquisition is a clear signal that our government will back British defence production. We’ll protect and grow our UK defence supply chain, support North East jobs, safeguard crucial tech for our Armed Forces, and boost our national security.”
The government has pledged further investment into the facility in the coming years to expand production capacity and strengthen resilience. The acquisition comes ahead of an Investment Summit designed to enhance UK trading relationships and create more high-quality jobs across the country.
Strategic Importance of Semiconductor Security
Semiconductors are the backbone of modern electronics, powering everything from consumer devices to advanced weapons systems. In the defence sector, materials such as gallium arsenide enable high-performance radar, secure communications, and electronic warfare systems that give armed forces a critical edge.
With global competition for semiconductor supply intensifying, securing sovereign production is increasingly viewed as a national security priority. The acquisition of Octric Semiconductors UK ensures Britain retains control over a crucial capability, while also positioning the country to meet future technological demands in fields such as artificial intelligence, quantum computing, and 6G communications.
By investing in its domestic semiconductor industry, the UK is reinforcing both its industrial resilience and its ability to field advanced military systems in an era of rapid technological change.
