'Tech cluster will create 3,500 jobs'

The latest technology for driverless cars, robots and mobile phones is set to create a further 3,500 jobs in Wales over next five years, a manufacturing firm has said.

A compound semi-conductor manufacturing "cluster" is being developed in Newport with £38m from the Cardiff city deal.

When the deal was signed it was forecast the sector would employ 2,000.

IQE's Dr Drew Nelson claimed businesses have already employed around 1,400 people.

He said the developments in the sector meant he expected a greater number of jobs to be created.

The factory at the former LG site will be owned by the 10 councils and leased to IQE and others in the industry to try to create a hub.

Other companies in the cluster include SPTS, Newport Wafer Fab and Microsemi.

The cluster is separate to a UK-government funded innovation hub in south Wales, which is part of the "Catapult" programme.

In June, the Secretary of State for Wales Alun Cairns MP "challenged" local technology leaders to "explore and capitalise on international opportunities" for the sector.

Profit warning

Dr Nelson said a recent drop in the value of IQE was a "short-term blip" as it prepared for a major expansion in manufacturing.

The company's share price reached a high of 174p in November 2017, but has fallen significantly over the last year.

Last month, it forecast a 16.4% decline in its full-year profits.

Reuters reported it was one of the firms in Apple's supply chain that have warned on their profits, because of weaker iPhone sales.

After that warning, the share price reached a low of 56p but has since increased to 70p.

He said: "It's a very short-term blip... demand fluctuates all the time and there are certain products which, if they don't sell very well, [have] an impact on the supply chain."

"In the long-term it doesn't make any difference at all."