Newport has established a cluster of semiconductor companies, with IQE in production since 1988 and the wider cluster is growing.
An independent report for CSconnected, produced by Cardiff University’s Welsh Economy Research Unit, found the south Wales compound semiconductor sector supported 3,140 jobs across Wales in 2025, up from 2,748 a year earlier, external, a 14% increase.
Of those, 1,914 were direct jobs in the industry, concentrated around Newport and the wider M4 corridor.
The report said average salaries in the sector were about £66,000.
Office for National Statistics data estimated the median monthly pay in the UK in August was £2,657 – or £31,884 a year, external.
Nearby Bassaleg School in Newport now offers a semiconductor qualification to students who are keen to join the industry.
IQE has benefited from the recent boom in AI because its chips are part of the physical architecture of data centres.
They are not connected to the algorithms that allow humans to interact with chatbots, but are found in the computer hardware that underpins the operation.
“The last 18 months were quite bumpy,” Meier admits, as IQE struggled for relevance with investors.
Earlier this year its role in data centre computing power was acknowledged and its share price grew quickly, allowing the firm to clear debts and begin hiring more staff.
The impact of AI on jobs has been evident recently with tech giant Oracle slashing 21,000 roles globally as it reshaped its business around the technology.
Amazon and Facebook-owner Meta have also cut thousands of jobs in recent months as they invest heavily in AI.
But Meier said: “We’re really lucky to have a very dedicated workforce that stuck with us throughout this bumpy road.
“Talent, for IQE, is one of the biggest assets that we have.”