A new joint venture between the Welsh Government, Compound Semiconductor Applications (CSA) Catapult, and Cadence Design Systems, will address long-term skills needs within the semiconductor design sector and support the industry’s growth by providing critical design services to SMEs and scale-up companies across the UK.
The dedicated semiconductor design centre, which has received £2.5m in Welsh Government investment, funding from Cadence, and support from CSA Catapult, will create over 100 new jobs for graduate students in the next five years, contribute an estimated £34m to the UK economy and help deliver the UK government’s industrial strategy. This dedicated design centre will build vital semiconductor design skills, grow the industry and international partnerships, and increase sovereign capability.
The new company aims to become a leading provider of semiconductor design services, supporting key industries such as automotive, aerospace, space, telecoms, defence, and AI. The new venture will leverage Cadence’s expertise and AI-driven IC design solutions, CSA Catapult’s advanced facilities and testing capabilities, and the Welsh Government’s financial support to create a sustainable, high-growth business. This partnership will drive innovation, create skilled jobs, and enhance the UK’s semiconductor ecosystem while addressing critical industry needs.
The UK has significant strengths in chip design, but to compete globally it needs more semiconductor design engineers. Global semiconductor revenues will grow to $1 trillion by 2030. According to the Department for Science, Innovation and Technology’s sector study, UK semiconductor companies said that integrated circuit design engineers are experiencing the most acute skills shortage. The new venture will build an employee-engaged culture where all can benefit from the business's success.
This strategic joint venture will strengthen the existing design community, working with universities, start-ups, and small businesses on new semiconductor projects. It will build new international partnerships and further investment, helping to deliver opportunities for semiconductor companies across the UK to collaborate with European and US chip initiatives. Over the next five years, the semiconductor design centre will provide training and a career path for graduates, apprentices, and career changers to enter the semiconductor industry. From its base in Centre 7 in Cardiff Gate, there will be opportunities for graduates in electronic and electrical engineering, computer science, and physics, helping to bridge the gap between university education and real-world job opportunities.
The Cadence Design Centre will be operated by Compound Semiconductor Applications (CSA) Catapult, the UK Government-backed authority on compound semiconductor applications in the UK; and Cadence, one of the world’s leading providers of software tools for designing semiconductor chips. Cadence is based in the US and has more than 13,000 employees worldwide. The company generated $4.6 billion in revenue in FY 2024. It will also establish a graduate training programme for engineers and architects, in collaboration with local universities and colleges, developing experts in the chip design process using Cadence technology.
The Cadence Design Centre represents the latest boost for the region’s compound semiconductor cluster and will provide a significant springboard to engagement with a number of key companies in the automotive, defence and aerospace sectors. Senior representatives from Cadence travelled from California to discuss the centre with Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, in Cardiff earlier this month. The Cadence Centre will be backed by £2.5m in investment from the Welsh government.
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