US Semiconductor Company Faces Threat of Closure in UK after Apple Supplier Deal Dropped
A US semiconductor company may have to shut down its UK site following Apple’s decision to cease using its chips, as reported by the Telegraph. Coherent, based in Pennsylvania, operates a large facility in Newton Aycliffe, County Durham, UK.
With Apple altering FaceID features in their upcoming iPhone model, Coherent’s chips are no longer required, leading to a termination of their contract. This move jeopardizes the future of the UK site, with potential implications for British defense equipment supplies provided by Coherent to companies like Leonardo.
The closure of the plant could diminish UK’s domestic capabilities in manufacturing semiconductors, forcing Leonardo to seek supplies from other countries. This setback comes at a crucial moment when the UK government is focusing on strengthening its semiconductor industry.
As the UK Defense Ministry closely monitors military supply chains, including semiconductors, the potential factory closure poses significant challenges in the country’s tech and defense sectors.