The Ministry of Defence (MoD) has announced the acquisition of a chip manufacturer in the North East of England, describing it as a “crucial” component of the UK’s defence supply chain.
Defence Secretary John Healey who visited the site confirmed the acquisition on Friday.
Newsng gathered that the factory in Newton Aycliffe, near Darlington, is the only secure facility in the UK with the expertise and technology to produce gallium arsenide semiconductors, which are used in vital military platforms such as Typhoon fighter jets.
Meanwhile, the Daily Telegraph said that the deal was estimated to be worth £20 million. Coherent had reportedly warned that the 310,000-square-foot plant was at risk of being closed or sold after Apple withdrew the business as a supplier, losing a significant portion of its revenue.
Healey said: “Semiconductors are at the forefront of the technology we rely upon today, and will be crucial in securing our military’s capabilities for tomorrow.
“This acquisition is a clear signal that our Government will back British defence production. We’ll protect and grow our UK Defence supply chain, supporting North East jobs, safeguarding crucial tech for our Armed Forces and boosting our national security.”
The factory, owned by US semiconductor giant Coherent, Inc., was on the verge of collapse when Apple ditched the business as a supplier, The Telegraph reported in August, while Italian aerospace company Leonardo was one of its customers.
The government said, “This acquisition will not only safeguard the future of the facility, which is critical to the defence supply chain and major military programmes and exports but also secures up to 100 skilled jobs in the North East.”
We earlier reported that Meta stated that it will continue to train its artificial intelligence systems using public Facebook and Instagram postings from adult users in the United Kingdom.
