UK Government Nationalizes Key Microchip Plant to Safeguard Jobs and National Security

The Ministry of Defence has acquired the only UK facility capable of producing gallium arsenide semiconductors after it faced closure due to a lost Apple contract.

The Ministry of Defence (MoD) purchased the Newton Aycliffe plant in County Durham from US company Coherent for £20 million.
The acquisition secures around 100 jobs and the facility will be renamed Octric Semiconductors UK.
The plant is critical for producing gallium arsenide semiconductors, essential for military platforms like Typhoon jets.
Defence Secretary John Healey emphasized the importance of the plant for national security and the UK defence supply chain.
The move is part of a broader government strategy to bolster economic growth and secure key technological industries.