Advancing UK Aerospace, Defence, Security & Space Solutions Worldwide
  • Home
  • /
  • Defence
  • /
  • MoD bolsters UK defence supply chain

Defence

MoD bolsters UK defence supply chain

A semiconductor factory has been acquired by Ministry of Defence (MoD) in Newton Aycliffe, County Durham, boosting UK defence capabilities.

Image by Alex Segre / copyright Shutterstock

The UK’s Armed Forces will be further bolstered as a crucial supply chain to UK defence has been secured today, after the government acquisition of a key semiconductor factory in the north-east.

Defence Secretary John Healey visited the site today, which is the only secure facility in the UK with the skills and capability to manufacture gallium arsenide semiconductors. These types of specialist semiconductors are used in a number of military platforms, including to boost fighter jet capabilities.

Advertisement
ODU RT

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.

Semiconductors are vitally important for the modern world we live in, being an essential component for the functioning of almost every electronic device we use, from phones and computers to ventilators and power stations. The importance of semiconductors to military applications means the technology can allow the military to fill the gaps to support their future needs.

The announcement comes ahead of the Investment Summit next month which will make clear that the UK is “open for business” as the UK government resets relations with trading partners around the globe and creates a pro-business environment that supports innovation and high-quality jobs at home and supports our mission to deliver growth.

The acquisition will also boost UK defence industrial capacity and exports, as the government intends to invest in the company over the coming years.

On the visit, the Defence Secretary welcomed the acquisition and spoke to staff directly.
Defence Secretary John 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."

Advertisement
Gulfstream RT

The semiconductor factory in Newton Aycliffe has been acquired by the government from its previous parent company Coherent Inc and will be named Octric Semiconductors UK.

This strategic investment will ensure the facility is capable of producing gallium arsenide semiconductors as well as more powerful semiconductors in the future, which will include the latest technology.

Over a trillion semiconductors are manufactured each year, with the global semiconductor market forecast to reach a total market size of $1 trillion by 2030. Semiconductors also underpin future technologies, such as artificial intelligence, quantum and 6G.

This emphasises government recognition of the strategic importance of semiconductors as a critical technology for the future of the UK and a significant enabler of the government’s growth and clean energy missions.

Work has already started to implement best practice governance that will ensure appropriate financial oversight to secure the company’s future success.

Government unveils Team UK approach to defence

Defence

Government unveils Team UK approach to defence

8 July 2025

UK Government plans to deliver jobs across the country by unlocking the full economic potential of Britain's defence sector are being unveiled today.

Construction begins on SLA accommodation at RAF Cosford

Defence

Construction begins on SLA accommodation at RAF Cosford

8 July 2025

Construction has started on a new 50-bedroom Single Living Accommodation (SLA) block at RAF Cosford in Shropshire.

Homes England acquires Ripon Barracks from MoD

Defence

Homes England acquires Ripon Barracks from MoD

7 July 2025

Homes England and the Ministry of Defence (MoD) have agreed that land at Ripon Barracks, a military site scheduled for closure, will be developed into 1,300 new homes following a sale between the two public sector organisations.

Royal Navy establishes autonomous minesweeping capability

Defence

Royal Navy establishes autonomous minesweeping capability

4 July 2025

The Royal Navy has - for the first time - established an autonomous minesweeping capability, after new systems were delivered to help combat the rapidly evolving threat of naval mines.

Advertisement
ODU RT
Serco appoints Keith Williams as Chair

Aerospace Defence Security Space

Serco appoints Keith Williams as Chair

4 July 2025

Serco has appointed Keith Williams to the Board as a Non-Executive Director and Chair designate.

BAE Systems to continue developing AFRL

Defence

BAE Systems to continue developing AFRL's BATDOK

4 July 2025

The US Air Force Research Laboratory (AFRL) has selected BAE Systems to continue development and support deployment of the Battlefield Assisted Trauma Distributed Operations Kit (BATDOK) via the new Force Optimization through Rapid-prototyping, Gear Enhancements & Innovative Technology (FORGE-IT) programme.

Advertisement
DSEI 2025