Supply chains for national security in focus. A U.S. company previously owned a struggling domestic facility of gallium arsenide semiconductors.
The United Kingdom has acquired a domestic factory for gallium arsenide semiconductors, previously owned by U.S. company Coherent Inc. According to Reuters, the plant had been in financial difficulty, with the purchase price estimated at $27 million. The British government stated that this strategic investment is aimed at strengthening the nation’s defense supply chain. The facility in Newton Aycliffe, Northern England, now renamed Octric Semiconductors UK following the acquisition, is the only secure domestic manufacturer of gallium arsenide semiconductors. These materials are used to enhance fighter jets, among other applications.
Many other technologies today also rely heavily on semiconductor chips made from raw materials like gallium and silicon. Due to their essential role and dual-use potential for civilian and military purposes, semiconductors are now considered critical for national security. The UK and other countries have developed their own semiconductor strategies, and these high-tech components have become a focus of geopolitical tensions. The U.S. implemented export controls two years ago to limit China’s access to advanced chips. In response, China introduced export restrictions in the summer of 2023 on key semiconductor materials, such as gallium and germanium.
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