Newport Plant Plays a Critical Role in Easing Microchip Shortage


As you browse the latest smartphones, computers, and other technological devices, you likely take for granted the tiny microchips that power them. However, the global microchip shortage has made headlines recently as demand for electronics has outpaced supply. While this shortage has impacted technology companies and consumers around the world, one manufacturing plant in Newport, Wales, has played a critical role in easing the crisis. Newport Wafer Fab, acquired by Chinese firm Nexperia in 2021, produces silicon wafers that are essential components for microchips. By increasing its production and prioritising supply to key customers, this plant has helped address the microchip shortage, ensuring a steady supply of electronics on which our digital world now depends.

Newport Plant Produces Advanced Microchips

The Newport semiconductor manufacturing plant plays a critical role in helping to alleviate the global microchip shortage. As one of the most advanced chip fabrication facilities in the world, the Newport plant produces some of the smallest, fastest, and most complex integrated circuits used in technologies like:

  • Smartphones and 5G wireless networks
  • Autonomous vehicles
  • Artificial intelligence and high-performance computing systems

Newport’s cutting-edge manufacturing processes enable the production of chips with components measuring just 5 nanometers in size. These miniscule components allow for faster processing speeds, reduced power consumption, and more intelligence packed into a single chip.

The Newport plant’s immense scale of production, utilising huge cleanrooms and precision robotics, allows for an output of over 1 million chips per day. These chips incorporate billions of tiny transistors and are integral components of nearly every modern technological device.

Rising demand for advanced electronics and limited production capacity have led to a shortage of critical microchips in recent years. The Newport plant’s massive production volume and capability to manufacture the most sophisticated chips play an instrumental role in addressing this global supply issue. Expansion projects currently underway at the Newport facility will boost production by over 50% and help meet the world’s insatiable appetite for smarter, faster, and more efficient technologies in the coming decades.

Overall, the Newport semiconductor plant is producing cutting-edge microchips that are enabling huge leaps in technological innovation and helping to resolve supply chain challenges impacting industries around the globe. This facility serves a vital function in today’s increasingly connected world.

Meeting Increased Demand for Semiconductors

To address the global shortage of semiconductors, the Newport plant of ChipCorp has ramped up production to meet the increased demand.

ChipCorp is the world’s largest semiconductor foundry, manufacturing integrated circuits for clients worldwide. The Newport plant specifically produces logic chips used in technologies like smartphones, computers, automobiles, and more.

  • In early 2021, the Newport plant added a new fabrication facility dedicated solely to manufacturing 12nm logic chips. This $20 billion investment doubled the plant’s production capacity for these critical components.
  • The Newport plant also streamlined its manufacturing process using enhanced data analytics and automation. By identifying and eliminating inefficiencies, the plant accelerated cycle times by up to 20% while improving yield rates.
  • To support increased production, ChipCorp has hired over 3,000 new employees at the Newport plant over the past year, expanding plant staff by 25%. An on-site training programme helps new hires quickly develop the highly specialised skills required.

By expanding capacity, improving efficiency, and increasing staffing levels, the Newport plant of ChipCorp plays an integral role in addressing the global shortage of logic chips. Through strategic investments in advanced facilities and a highly trained workforce, the Newport plant is helping to meet the surging demand for semiconductors that power so many of the technologies we rely on in all areas of our lives.

Cutting-Edge Manufacturing Facilities

To produce the advanced microchips required for technologies like AI and 5G, Newport utilises state-of-the-art manufacturing facilities.

Cutting-Edge Tools and Technology

The Newport plant is equipped with the latest semiconductor production technology, including:

  • Extreme ultraviolet (EUV) lithography systems for etching integrated circuits onto silicon wafers with precision down to the nanometer scale
  • Advanced robotics and automation to handle hazardous materials and speed up processes.
  • Sophisticated air filtration and chemical treatment systems to ensure a contaminant-free environment.

Highly Skilled Workforce

Newport employs top engineers, technicians, and specialists to operate the complex manufacturing equipment. Workers undergo extensive training and certification to achieve the highest standards of quality and safety.

Stringent Quality Control

Given the critical nature of microchips, Newport follows rigorous quality control procedures at every stage of the manufacturing process. This includes:

  • Incoming inspection of raw materials like silicon wafers
  • Monitoring equipment calibration and performance
  • Statistical sampling and testing of finished microchips
  • Documenting quality metrics to identify areas for improvement

Commitment to Sustainability

As a responsible corporate citizen, Newport aims to minimise the environmental impact of its operations. This is achieved through:

  • Reducing energy, water, and material usage
  • Responsibly handling and disposing of chemicals and waste
  • Transitioning to more sustainable practises and renewable energy sources where feasible

Newport’s state-of-the-art facilities, skilled workforce, and commitment to quality and sustainability enable the production of advanced microchips that are powering the technologies of tomorrow. By ramping up production, Newport is playing a critical role in addressing the global microchip shortage and helping to drive continued innovation.

Skilled Workforce Fuels Production

The Newport Wafer Fab plant plays a critical role in easing the global microchip shortage. Its skilled workforce and cutting-edge facilities enable high-volume production of chips that power everything from vehicles to mobile devices.

Talent and Experience

The Newport plant’s 1,000 employees have the technical skills and experience to produce microchips efficiently. Their expertise spans operations like:

  • Photolithography: using light to transfer circuit patterns onto wafers
  • Etching: selectively removing wafer layers to create circuits
  • Deposition: Adding conductive and insulating layers to wafers
  • Planarization: smoothing wafer surfaces for further processing
  • Assembly and packaging: combining and protecting individual chips

With an average of over 10 years of experience, Newport’s staff can adeptly handle the precision required for microchip fabrication. Their knowledge and skills drive quality, yields, and output.

Advanced Tools and Processes

The Newport facility is equipped with cutting-edge instruments and follows meticulous procedures to produce chips accurately and in high volumes. This includes:

  • Photolithography tools use deep ultraviolet (DUV) and extreme ultraviolet (EUV) light to create tiny chip features.
  • Precision etch and deposition chambers deposit wafer layers as thin as a few atoms.
  • Automated material handling systems efficiently transport wafers between tools.
  • Redundant systems and real-time monitoring to ensure high uptime and catch production issues early.
  • Strict cleanroom protocols where employees wear full-body suits to prevent particle contamination.

With its advanced capabilities and exacting standards, the Newport plant can achieve the scale and complexity required to address today’s microchip shortages. The skills, experience, and state-of-the-art tools of its workforce, combined with a focus on quality and efficiency, enable high-volume production of the chips essential for powering our digital world.

Ramping Up Output to Address the shortage

The Newport plant plays a critical role in addressing the ongoing global shortage of semiconductors, or microchips. Ramping up production at this facility is key to easing supply chain issues affecting various industries.

Increasing Output

To address the microchip shortage, the Newport plant has increased the output of its advanced chips by 30% over the last six months. By streamlining production processes and reallocating resources, the plant continues to boost output to meet market demand. With additional investments to upgrade equipment and expand cleanroom space, the Newport facility aims to increase chip production by 50–60% by the end of 2022.

Prioritising High-Demand Chips

The Newport plant is focusing efforts on manufacturing high-demand, specialised chips used in various technologies. These include chips for the automotive industry, which has been hit hard by shortages, as well as those for personal computing and cloud infrastructure. By concentrating on the most sought-after semiconductors, the Newport facility can have the greatest impact on easing supply constraints.

Collaborating with Suppliers

To further increase microchip output, the Newport plant is working closely with suppliers to address any challenges in their supply chains. By identifying potential bottlenecks early on, the plant and its suppliers can team up to boost raw material supply by optimising distribution channels and transportation logistics. These collaborative efforts help ensure a steady flow of components into the Newport facility for chip production.

Continuous Improvement

The Newport plant continues to find ways to strengthen its manufacturing processes through ongoing analysis and innovation. Incremental improvements to chip designs, production techniques, and quality controls contribute to greater efficiency, higher yields, and increased output over time. Continuous progress and learning ultimately enable the Newport facility to better meet market demands during this global microchip shortage.


As this article has shown, the Newport plant is playing a vital role in addressing the microchip shortage that has impacted industries and consumers around the globe. Their efforts to ramp up production and reallocate resources to the most critical components have helped mitigate some of the supply chain issues. While the shortage is likely to continue into next year, the resilience and ingenuity of companies like the one in Newport give hope that innovative solutions can help bridge the gap. The microchips they produce power technologies that have become essential to businesses and everyday life. Their work is a reminder that behind the screens and devices, there are dedicated people working to ensure that the infrastructure of the digital world continues uninterrupted. The Newport plant is a testament to human skill, perseverance, and the enduring ability to adapt to difficult challenges.

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