Apple Boosts Global Product Sales Despite Weak China iPhone Demand

Apple China

Metal Demand Poised to Remain Strong as Apple Sales Climb

Apple Inc. has increased its overall product sales in the first fiscal quarter, despite facing headwinds in China’s smartphone market. The boost in global performance highlights ongoing strong demand for critical tech hardware and suggests sustained demand for key industrial and minor metals.

Apple Rises on Strong Holiday Demand, iPhone 16 Series Success

Apple reported nearly $98 billion in net product sales from October to December, up from $70 billion in the previous quarter. Although iPhone sales to China fell due to intensifying competition from Huawei, Vivo, and Xiaomi, total iPhone sales still rose to $69.1 billion, driven by the global launch of the iPhone 16 series and strong holiday shopping.

Apple's iPhone 16 saw increased uptake where Apple Intelligence was available, boosting performance outside China. However, Apple Intelligence has not launched in China, impacting its market share there. Despite the regional setback, overall iPhone sales declined less than 1% compared to the same quarter in 2023.

Mac and iPad Sales Grow, Metal Demand Remains Steady

Apple also saw growth in its computer and tablet lines, with Mac sales rising 13% to nearly $9 billion and iPad sales increasing to $8.1 billion. However, wearables and home accessories dropped slightly, totaling $11.5 billion compared to $12 billion the year before.

Given Apple’s reliance on critical raw materials—including cobalt, lithium, rare earths, and base metals such as aluminum, copper, and zinc—this sustained sales momentum is likely to support steady demand across global metal supply chains. As Apple ramps up innovation and new product rollouts, metal producers will closely monitor its trajectory.

MP Apple recycled rare earth magnets deal anchors U.S. circular supply chain

Apple

MP Apple recycled rare earth magnets move from pilot to scale. The $500mn long-term deal commits Apple to 100% recycled magnets made in the U.S. MP will process post-industrial and end-of-life magnets at Mountain Pass. Magnet shipments start in 2027 and scale across Apple devices.

Partnership scope and buildout

The Fort Worth plant will make recycled rare earth magnets for Apple devices. MP will install a dedicated recycling line at Mountain Pass. The project follows a five-year pilot between the companies. Meanwhile, DOD funding supports 10,000 t per year magnet capacity. Together, these steps anchor a domestic magnet ecosystem.

Supply-chain impact and circularity

The MP Apple recycled rare earth magnets deal strengthens U.S. resilience. It lowers exposure to export controls and shipping risks. As a result, Apple gains traceable inputs and lower Scope 3 risk. The approach valorizes post-industrial scrap and end-of-life returns. It can reduce NdPr demand for virgin mining.

Market timing favors localized magnet ramp. EVs, electronics, and wind keep magnet demand strong. However, execution depends on stable scrap flows and yields. No volume terms were disclosed, adding planning uncertainty. Therefore, early offtake scheduling will be critical.

MP Apple recycled rare earth magnets will ship from 2027. Production will scale to hundreds of millions of devices. Meanwhile, Apple can showcase circular content at volume. The domestic hub could attract new industrial customers.

The Metalnomist Commentary

This partnership hard-wires circularity into a strategic U.S. magnet base. Watch scrap collection logistics, recovery rates, and alloy performance at scale. Policy support and OEM offtakes will determine the speed of the ramp.

AI Growth Boosts Electronics Metal Demand, But Broader Semiconductor Market Faces Weak Recovery

AI

The explosive growth of Artificial Intelligence (AI) is undoubtedly driving demand for specific electronic metals, but the broader electronics market, particularly the semiconductor sector, is struggling with a slower-than-expected recovery. As we approach 2025, the demand outlook remains mixed, despite AI's role in pushing innovation and technological expansion.

AI Fuels Electronics Demand

This year, AI technologies, especially AI-powered chatbots and smartphones, gained widespread traction. Companies like Apple and Samsung have been rolling out their own AI systems, with Apple’s “Apple Intelligence” software joining Samsung’s Galaxy AI. At the same time, OpenAI's ChatGPT reached 200 million active weekly users, doubling from the previous year. These developments indicate the mainstreaming of AI tools in everyday life.

The continued growth of AI will be supported by the physical expansion of data centres and the increased demand for hardware capable of handling AI's vast data processing needs. This translates into higher demand for specialty materials that make up critical electronic components. As data centres require more energy-efficient solutions to process increasing data volumes, materials like gallium nitride (GaN) and indium phosphide (InP) will play a central role.

Gallium Nitride (GaN) and Indium Phosphide (InP) Boosted by AI Expansion

As AI technologies scale, the energy demands of data centres will rise significantly. According to research from Goldman Sachs, the data centre expansion needed to support AI could increase electricity consumption by up to 160% by 2030. This will likely spur greater demand for GaN-based power electronics, which are more energy-efficient than traditional silicon electronics. GaN-based devices generate less heat and can operate at higher temperatures, making them ideal for data centres where cooling accounts for up to 40% of energy consumption.

Another compound semiconductor, indium phosphide (InP), is expected to gain traction as well. InP is already used in data and telecom transceivers and is poised to play a key role in the future of 6G wireless and satellite communications networks. InP-based photonic integrated circuits enable faster, more energy-efficient data transfers, making them essential for the high-speed data transfers required by AI clusters in data centres. This has garnered attention from the U.S. government, with the CHIPS Act supporting multiple InP-related projects this year.

Wider Electronics Demand Faces Challenges

Despite the promising outlook for AI-driven growth in specific sectors, the broader semiconductor market is still grappling with weaker-than-expected recovery. Materion, a U.S.-based producer of specialty materials for electronics, reported slower-than-expected semiconductor recovery in its third-quarter results. The company, which manufactures materials for chip manufacturing, including tantalum sputtering targets and antimony chemicals, noted that while there is strong demand for high-performance chips used in computing, the market for 2025 remains uncertain.

The situation was mirrored by ASML, a major chip equipment manufacturer, which lowered its revenue forecast for 2025 from €30-40 billion to €30-35 billion. ASML highlighted that semiconductor manufacturers are curbing capacity expansions due to the ongoing weakness in chip demand recovery.

Semiconductor Shipments and Market Outlook

The global semiconductor industry witnessed a peak in silicon wafer shipments in 2022, driven by supply shortages and high demand for consumer electronics during the pandemic. However, shipments of silicon wafers—a key indicator of chip production—are expected to drop from 14,565 million square inches (MSI) in 2022 to 12,174 MSI in 2024. Although global silicon wafer shipments are projected to rise to 13,328 MSI in 2025, the recovery expected in 2024 has largely failed to materialize, indicating continued challenges in the broader electronics market.

Conclusion

The demand for electronic metals, particularly those used in AI and data centre technologies, is on the rise. However, the semiconductor sector as a whole is still experiencing a slow recovery, with uncertainty surrounding the broader electronics market heading into 2025. While AI's growth continues to offer opportunities for companies involved in the production of GaN and InP-based components, the overall demand picture for electronics remains mixed, with slower-than-expected recovery from the pandemic-induced boom.

Tantalite Prices Surge Amid DRC Conflict and Global Supply Chain Strain

Tantalite

The global tantalum market has seen a significant price surge in recent weeks, largely due to escalating violence in the Democratic Republic of Congo (DRC). This comes at a time when the supply of tantalite, a key metal used in electronics manufacturing, is already under significant strain.

Rising Prices Fueled by Political Unrest in DRC

The price of tantalite has spiked over the past two weeks, a result of renewed violence in the DRC, where the M23 militant group has captured key mining areas. This instability in the DRC's North and South Kivu provinces is compounded by the end of the Lunar New Year public holiday in China, which has historically influenced demand for the metal. The M23 group's capture of Goma and recent advances toward Bukavu have disrupted the extraction and transport of tantalite, tungsten, and tin, collectively known as the 3Ts. This disruption has caused many local mining companies to flee, further tightening supply.

Increased Supply Chain Challenges and International Repercussions

The M23 group's activities in the DRC have led to the withdrawal of international organizations like ITSCI, which monitors the trade of conflict minerals. Most smelters and downstream Original Equipment Manufacturers (OEMs) are adhering to OECD guidelines, which prevent the use of minerals sourced from areas controlled by non-state armed groups. As a result, many companies are hesitant to accept tantalum mined in these conflict zones, exacerbating the global shortage.

With supply chains already strained, mining firms are scrambling to export material from the region to avoid the risk of looting. Meanwhile, the banking system in South Kivu is in turmoil, which has prompted artisanal mining companies to sell their stock quickly, further fueling market volatility.

A Struggling Industry Facing Limited Tantalite Supply

Tantalite supply was already under pressure before the current political unrest. The 2023 takeover of Rubaya by the M23 group and a series of disruptions caused by political disputes and tariffs on Chinese tantalum products had already left smelters with minimal inventory to begin the year. Many consumers and manufacturers are now finding it difficult to secure enough material to meet their production needs. Although some OEMs are diversifying their sources to countries like Ethiopia, Mozambique, and Sierra Leone, political instability in these regions has also limited availability.

The overall situation presents a challenging year for the tantalum industry, with limited supply, rising prices, and increasing pressure from major companies like Apple to cut sourcing from high-risk areas like Rwanda and the DRC. Industry experts suggest that 2024 will be marked by ongoing challenges for both suppliers and consumers of tantalite.

BaoTi Boosts Titanium Mill Products Output and Sales in 2024

BaoTi

Strong Demand from 3C, Aerospace, and Energy Sectors Drives Growth

China’s largest titanium producer, BaoTi, significantly increased its titanium mill products output in 2024. The company responded to higher demand from the computer, communication and consumer electronics (3C), aerospace, power, and shipbuilding sectors.

BaoTi produced 33,600 tons of titanium mill products last year, marking a 12% rise from 30,000 tons in 2023. The company plans further growth, targeting 43,000 tons of production by 2025.

Sales also grew steadily. BaoTi sold 31,300 tons of titanium mill products in 2024, a 6.5% increase from 29,400 tons the previous year.

Aerospace Leads Titanium Consumption Growth

China’s total consumption of titanium mill products reached 151,000 tons in 2024, up 1.6% compared to 2023. The aerospace sector posted the largest growth, consuming 32,193 tons, up by 2,816 tons from a year earlier. The power industry followed, with a 1,364-ton increase to 8,453 tons, driven by the new energy sector’s development.

Meanwhile, the 3C industry saw a 10% rise in titanium usage, reaching 11,000 tons in 2024. Domestic producers secured major orders from companies like Apple, Samsung, and Huawei, boosting demand.

The shipbuilding sector also expanded its titanium consumption by 1,191 tons, totaling 4,933 tons last year.

Global Titanium Output Rises Alongside China's Growth

China’s 32 major titanium manufacturers produced 172,000 tons of mill products in 2024, up 8.1% from 2023. Globally, titanium mill product output climbed by 8%, reaching 260,000 tons according to preliminary estimates.

Organizations such as CNIA-Ti, the CIS Titanium Association, and the Japan Titanium Association contributed to these global estimates. Stay tuned with The Metalnomist for more updates on global titanium market dynamics.

China Titanium Consumption 2025 Rises as Export Challenges Persist

China Titanium, Xinnuo Titanium

China titanium consumption 2025 is expected to rise slightly, driven by demand from aerospace, electronics, and power industries. However, Chinese titanium producers continue to face significant export barriers in Western markets, especially the U.S. and EU, due to tariffs and certification hurdles.

Aerospace and 3C Sectors Lead Titanium Demand Growth

China consumed 151,000 tonnes of titanium mill products in 2024, up 1.6% year-on-year, according to CNIA-Ti. The aerospace sector recorded the largest growth, consuming 32,193 tonnes—an increase of 2,816 tonnes from 2023. The power industry followed, supported by growth in renewable energy, while 3C (computer, communication, and consumer electronics) demand rose by 10% to 11,000 tonnes, with Apple, Samsung, and Huawei sourcing parts from local suppliers.

Chemical applications remained the largest titanium-consuming sector at 48.5% of total demand, but usage in chemicals, ocean engineering, and salt manufacturing declined. Shipbuilding also saw steady growth, increasing consumption by 1,191 tonnes to 4,933 tonnes.

Titanium Sponge Output Rises, Led by China and Saudi Arabia

Global titanium sponge production increased by 12% in 2024 to 380,300 tonnes. China led with 256,000 tonnes, up 36%, accounting for 67% of global output. Saudi Arabia followed with a 17% rise to 15,000 tonnes. Japan’s sponge output declined 3.5% to 55,000 tonnes, while Ukrainian production remained at zero.

Russia's VSMPO-Avisma and Solikamsk produced between 20,000 and 26,500 tonnes, while Western buyers continue sourcing from Russia due to limited alternatives, despite sanctions and restrictions.

Export Market Access Remains a Major Hurdle

Chinese titanium exporters are eager to enter Western aerospace markets, but qualification requirements for sponge and semi-finished products like billets and bars remain a key challenge. In the U.S., a 20% tariff on titanium products imposed in early 2024 has stalled contract negotiations. Although titanium is exempt from reciprocal tariff increases, the uncertainty has added risk for long-term buyers.

In contrast, the EU and UK have suspended some titanium tariffs for aerospace, but supply chains remain locked into existing agreements with qualified Western producers. Market penetration remains difficult despite strong output growth in China.

The Metalnomist Commentary

The China titanium consumption 2025 forecast reflects steady domestic growth, led by aerospace and electronics. However, real global competitiveness hinges on overcoming certification and tariff-related export hurdles, particularly in Western aerospace markets still reliant on legacy Russian supply chains.

Texas Instruments Expands Chip Manufacturing with Two New Fabs in Texas

Texas Instruments

Texas Instruments Expands Domestic Semiconductor Capacity

Texas Instruments (TI) will build two new semiconductor fabrication facilities in Sherman, Texas, as part of its $60bn investment plan. The company aims to strengthen domestic semiconductor production amid rising demand and strategic US policy support. These facilities will join seven other fabs already operating or planned across Texas and Utah, collectively expected to produce hundreds of millions of chips daily at full capacity.

Federal Support Boosts Semiconductor Manufacturing Investment

The US government is playing a central role in enabling TI’s semiconductor expansion. In 2024, TI secured $1.6bn under the US Chips and Science Act to support construction of its first two Sherman fabs and its second Lehi, Utah, facility. The company also expects $6bn–8bn in additional tax credit funding from the US Treasury Department’s advanced manufacturing investment program. If Congress raises the investment credit percentage from 25pc to 30pc, TI could gain further support for its projects.

Broader Impact on Semiconductor Supply Chains

TI’s semiconductor fabs will play a crucial role in securing critical supply chains for US industries. The company produces analog and embedded processing semiconductors for major customers such as Apple, Ford, Medtronic, Nvidia, and SpaceX. By expanding capacity, TI will help reduce reliance on foreign semiconductor sources, strengthen resilience against supply shocks, and enhance competitiveness across technology and automotive markets.

The Metalnomist Commentary

Texas Instruments’ expansion reflects the reshaping of global semiconductor supply chains under US industrial policy. While the $60bn investment is significant, its real impact lies in reducing import dependency and fortifying key technology sectors. The fabs will strengthen US capabilities in advanced manufacturing, ensuring long-term resilience in a geopolitically sensitive industry.

Taiwan’s TSMC Reports Robust Q3 Revenue Growth Driven by AI and Smartphone Demand

TSMC

Taiwan Semiconductor Manufacturing Company (TSMC) reported a stellar third-quarter performance for 2024, as surging demand for artificial intelligence (AI) chips and smartphones propelled its revenue to $23.5 billion. This represents a 13% quarter-on-quarter growth from $20.8 billion and an impressive 36% increase year-on-year from $17.3 billion. The company's results exceeded its prior guidance of $22.4-$23.2 billion, solidifying its position as a key player in the semiconductor industry.

Advanced Technologies Drive Growth

Demand for TSMC’s cutting-edge technologies underpinned this growth. The company's 3-nanometer (3nm) process technology contributed 20% of Q3 revenues, up from 15% in Q2. Although the contribution from the 5nm process fell slightly to 32% from 35%, the steady performance of 7nm wafers, which accounted for 17% of revenues, indicates consistent demand for mature nodes.

High-performance computing (HPC) remained the largest revenue driver, comprising 51% of total revenue, while smartphones accounted for 34%. The Internet of Things (IoT) contributed 7%, and the automotive sector added 5%.

AI and Smartphones Lead Market Momentum

The rollout of AI applications and the launch of new flagship smartphones, including Apple's iPhone 16, were significant catalysts. According to data from the International Data Corporation (IDC), global mobile phone shipments rose 4% year-on-year in Q3, reaching 316 million units. Growth in Chinese smartphone brands, such as Huawei and Xiaomi, further bolstered this trend.

Future Outlook and Materials Innovation

TSMC projects its Q4 revenue to climb to $26.1-$26.9 billion, driven by sustained demand for AI and smartphones. AI advancements are expected to spur the adoption of compound semiconductors like gallium nitride (GaN) and gallium arsenide (GaAs), materials that are more energy-efficient than traditional silicon. These innovations could redefine energy efficiency standards in semiconductor manufacturing.

TSMC's strong third-quarter performance highlights its dominance in the global semiconductor market and its ability to meet evolving technological demands, reinforcing its role as a critical supplier for the AI and mobile computing revolutions.

MP Materials Magnet Campus in Texas Expands US Rare Earth Manufacturing Capacity

MP Materials

MP Materials magnet campus plans in Northlake, Texas, mark a major step in building a larger US rare earth magnet supply chain. The company’s planned “10X” facility will lift its total neodymium-iron-boron magnet production capacity to about 10,000 t/yr.

The MP Materials magnet campus is expected to require more than $1.25bn in investment. Engineering and equipment procurement are already underway, and commissioning is scheduled for 2028. The project strengthens the company’s position as one of the few integrated Western rare earth producers moving from mining and refining into finished magnet production.

The location also carries strategic value. Northlake sits fewer than 10 miles from MP’s existing Independence facility in Fort Worth, allowing the company to build a regional magnet manufacturing cluster with shared industrial infrastructure, workforce development, and supply-chain connectivity.

Texas Incentives Support Domestic Magnet Scale-Up

Texas, Denton County, and the City of Northlake approved an incentive package worth $200mn over a decade. The package includes grants, abatements, and exemptions designed to support one of the most capital-intensive segments of the rare earth value chain.

This support reflects the strategic importance of neodymium-iron-boron magnets. These magnets are used in electric motors, robotics, drones, defense systems, wind power, industrial automation, and advanced electronics. For the US, domestic magnet capacity is becoming a national competitiveness issue as China continues to dominate much of the rare earth processing and magnet manufacturing chain.

The MP Materials magnet campus also expands the company’s role beyond raw material supply. MP describes itself as an integrated magnet producer, with activities spanning mining, refining, metallization, alloying, sintering, finished magnet production, and recycling. That vertical model is important because rare earth supply security depends on every step between ore and magnet-ready components.

Northlake Adds Scale to Fort Worth Magnet Platform

MP’s existing Independence facility in Fort Worth provides the foundation for the Northlake expansion. Independence has 1,000 t/yr of magnet production capacity, with a 2,000 t/yr expansion already underway. That site is also anchored by a partnership with Apple focused on magnet recycling.

The Northlake project adds a much larger scale-up pathway. By targeting about 10,000 t/yr in total neodymium-iron-boron magnet capacity, MP is positioning itself to serve higher-volume demand from automotive, electronics, energy, and defense customers.

Recycling will also become more important as magnet demand grows. Recovered magnets can provide an additional rare earth feedstock stream and reduce pressure on primary supply. In a market exposed to geopolitical risk, recycling can strengthen domestic material resilience and improve traceability.

The Metalnomist Commentary

MP’s Northlake project shows that the US rare earth strategy is shifting from mining announcements to industrial execution. The critical test will be whether domestic magnet production can scale with competitive costs, qualified customers, and reliable feedstock flows.

OEM upstream traceability in 3T supply chains faces a new conflict test

ITSCI

OEM upstream traceability in 3T supply chains is under fresh pressure as conflict reshapes tantalum sourcing from central Africa. ITSCI warns that OEM upstream traceability in 3T supply chains cannot deliver mine-by-mine disclosure once material is smelted. However, the group argues that OEM upstream traceability in 3T supply chains should mean deeper engagement with upstream schemes, not blanket disengagement.

OEM upstream traceability in 3T supply chains has hard technical limits

OEMs increasingly ask which specific mine sits behind each component in their products. ITSCI stresses this is technically impossible after smelting. Smelters can receive ore from any of 3,000 ITSCI-monitored mine sites across the Great Lakes Region.

Through ITSCI, smelters know the precise mine origin of incoming tagged consignments. However, smelters routinely blend those inputs with concentrates from other countries. Once material is smelted, minerals lose mine-level identity and cannot be traced back. Therefore, OEM expectations of exact mine mapping at product level do not match process realities.

Instead, ITSCI says OEMs should plug into programme data on monitored mines, local context and production trends. Yet only seven downstream companies are associate members today. As a result, governance influence and feedback from the largest electronics and auto brands remains limited.

Disengagement from Great Lakes 3T supply hits conflict regions and buyers

Some OEMs, including Apple, have told suppliers to stop sourcing tantalum from DRC and Rwanda. They fear any link to non-state armed groups in contested mining areas. However, ITSCI argues that exiting these regions should be reserved for last-resort situations. Responsible sourcing from the Great Lakes Region remains possible under robust due diligence and monitoring.

The DRC is a major producer of tantalum, tungsten and tin concentrates, the so-called 3T conflict minerals. Tantalum feeds capacitor powders used in data centres, EVs, notebooks and wearables. Therefore, blanket withdrawal from the region risks shrinking legal supply just as demand for advanced electronics grows.

Meanwhile, China has consolidated its position as the largest buyer of central African tantalum and niobium concentrates. Chinese imports from Rwanda and DRC edged higher year on year in January–July. At the same time, many DRC mine sites fell under M23 control and can no longer be independently monitored. This combination of conflict, opaque trade flows and limited OEM engagement heightens systemic ESG risk.

The Metalnomist Commentary

ITSCI’s message is blunt: perfect mine-level transparency is impossible, but better OEM upstream traceability in 3T supply chains is not. Brands that simply walk away from DRC and Rwanda may reduce headline risk, yet they also cede influence to buyers less concerned with ESG. The real test will be whether more OEMs join and fund upstream schemes, using their leverage to improve conditions rather than abandon challenging regions.

China Titanium Mill Products Output Rises Sharply in 2024

Baoti Titanium

China titanium mill products output surged in 2024 as domestic and global demand increased across multiple industries. Leading producer BaoTi boosted its titanium mill production by 12% year-on-year, reaching 33,600 tonnes, with plans to expand to 43,000 tonnes in 2025. The company also raised sales by 6.5% to 31,300 tonnes last year.

Rising Demand from Aerospace and 3C Industries

The China titanium mill products output increase was driven by rising demand from the aerospace, 3C (computer, communication, and consumer electronics), and power sectors. Aerospace was the top contributor, with titanium usage climbing by 2,816 tonnes to 32,193 tonnes, accounting for over 21% of national consumption. The 3C sector followed with a 10% rise, reaching 11,000 tonnes, as major global brands like Apple, Samsung, and Huawei sourced titanium parts from Chinese producers.

Global Titanium Market Follows Upward Trend

China's 32 major manufacturers produced a combined 172,000 tonnes of titanium mill products in 2024, reflecting an 8.1% increase. This growth aligned with global trends, as worldwide titanium mill product output rose by 8% to 260,000 tonnes. The shipbuilding sector also showed robust demand growth, consuming 4,933 tonnes—up by 1,191 tonnes compared to 2023. Meanwhile, China's power industry added 1,364 tonnes of new titanium demand, driven by energy transition investments.

The Metalnomist Commentary

China titanium mill products output continues to reflect the nation’s growing dominance in high-performance metal markets. With expansion plans underway, China is poised to further strengthen its position across aerospace, electronics, and energy applications in 2025 and beyond.

UK's MoD Acquires GaAs Plant to Strengthen Military Supply Chain

MoD

The UK's Ministry of Defence (MoD) has secured the future of a key semiconductor manufacturing facility by acquiring a gallium arsenide (GaAs) plant in Newton Aycliffe, England. The factory, which will now be renamed Octric Semiconductors UK, was purchased from US-based Coherent to prevent its closure, ensuring the UK retains its only secure facility capable of producing GaAs semiconductors vital for military applications, including enhancing fighter jet capabilities.

Coherent, previously known as II-VI, had been seeking to sell the plant as part of its strategy to streamline operations and focus on more profitable ventures, such as silicon carbide wafers and indium phosphide transceivers. However, the MoD's acquisition will not only preserve this critical facility but also boost the UK’s defence industrial capacity and exports.

Investment to Secure Future Defence Technology

The Ministry of Defence plans to invest significantly in Octric Semiconductors UK, with the goal of enhancing the facility's ability to produce advanced GaAs semiconductors for military use. This investment will also pave the way for the development of more powerful chips in the future, strengthening the UK’s defence technology infrastructure.

The plant, originally opened by Fujitsu in 1991, has changed ownership multiple times and has produced III-V-based radio frequency microelectronic and optoelectronic devices for sectors such as communications, aerospace, and defence. Coherent's decision to divest the plant followed a notable decrease in consumer electronics revenue, largely attributed to Apple ending a supply agreement due to design changes in the iPhone.

The UK semiconductor industry has seen several firms close or sell to foreign buyers in recent years, leaving the nation's defence sector increasingly reliant on overseas suppliers. The acquisition of this plant represents a significant step in reversing this trend and bolstering domestic production of crucial military technologies.

"Semiconductors are at the forefront of the technology we rely upon today, and will be crucial in securing our military's capabilities for tomorrow," said Defence Minister John Healey. "This acquisition is a clear signal that our government will back British defence production. We'll protect and grow our UK defence supply chain, supporting northeast jobs, safeguarding crucial tech for our armed forces and boosting our national security."