Wales’ technology sector: taking the world by storm

Avril Lewis at Technology Connected explores some of Wales’ strongest tech sectors, the opportunities they offer to investors, businesses and employees, and how this will be encompassed at this year’s Wales Tech Week summit

In Welsh business circles, there is a common refrain that Wales does not effectively promote its strengths. Welsh innovation and technological capabilities encompass numerous areas, including world-leading expertise in cyber security, compound semiconductors and emerging sectors like fintech.

Wales: a world leader in cyber-security

Historically Wales has been a world leader in cyber-security partly because of the location of British military and defence sites, according to John Davies from Cyber Wales, the industry’s representative body.

South Wales forms the western side of the Severn Valley Cyber Launchpad area, with several strategic defence assets in close proximity, such as GCHQ in Cheltenham, the Royal Signals Reserve unit in Cardiff, and the 14 Signal Regiment based in Haverfordwest, which provides worldwide communications and tactical cyber-capability. Over decades, this defence infrastructure helped create a foundation for the information security industry.

The next important factor is Welsh universities, which produce a stream of tech-capable graduates in different areas of cyber-security with varying focuses. The University of South Wales, for example, specialises in cyber-forensics - investigating cyber-security breaches and devising protections against further attacks. The university also joined forces with the Welsh Government to launch the National Cyber Security Academy, offering a BSc in Applied Cyber Security.

The field is critical for all businesses, but many of these graduates from Welsh university cyber-security courses go to work in globally recognised companies with bases in Wales, such as Airbus, Thales, QinetiQ, BAe, and General Dynamics.

Within a short distance of these Academic Centres of Excellence and businesses, Wales hosts some of the UK Government’s largest, strategically important databases – the DVLA in Swansea, the Office for National Statistics and a regional Passport Office in Newport, and Companies House and the Intellectual Property Office in Cardiff.

The combination of all these elements has created a concentration of cyber-security expertise in Wales, which in turn has contributed to the UK’s position as a global leader in cyber-capability, ranked second after the USA. 

As the representative body, Cyber Wales has several clusters – for example covering North Wales and South Wales, Women in Cyber, and different specialisms like Data Privacy. The UK and Welsh Government have recognised the importance of this field and the extraordinary opportunities it offers for business creation and well-paid work. 

The Welsh Government, in partnership with the Cardiff Capital Region and others, has invested in the Cyber Innovation Hub, led by Cardiff University with partners including Airbus, Alacrity Cyber, CGI, Thales NDEC, Tramshed Tech, and the University of South Wales.

Expertise in compound semiconductors

Compound semiconductors play a crucial role across many industries, including telecommunications, electronics, energy, and healthcare, by enabling high-performance devices and advanced functionality.

Unlike silicon microchips, compound semiconductors are made up of two or more elements from the periodic table. They possess unique properties that make them highly valuable in modern technology applications such as higher power, faster speeds, and improved efficiency compared with silicon semiconductors.

Their use in applications like 5G communication networks, electric vehicles, renewable energy systems, and advanced healthcare devices has contributed to significant technological breakthroughs.

But why has Wales emerged as such a strong player in this field? Chris Meadows, from industry body CSconnected, traces it back over more than three decades to the creation of a strong ecosystem comprising leading companies and academic institutions.

Businesses such as IQE, KLA SPTS Technologies, and Microchip are lynch pins in Wales’ compound semiconductor industry. Additionally, universities like Cardiff University and Swansea University actively contribute to research and development in this field. The more recent establishment of the Compound Semiconductor Centre and the Compound Semiconductor Applications Catapult provide prototyping facilities completing the innovation cycle from research through to world-class manufacturing.

The UK Government’s recent announcement of £1bn investment in the semiconductor sector highlights the importance and potential of this industry. This funding aims to strengthen the UK’s position in the global semiconductor market, drive innovation, and create job opportunities.

With the increasing demand for compound semiconductor-based products, there is a chance for Wales to further develop the supply chain with companies involved in materials supply, device fabrication, testing, packaging, and more.

As the industry grows, there will also be a need for a skilled workforce, creating high-value employment and training opportunities in Wales and the wider UK.

Robust expansion for Welsh fintech

Wales is also thriving as a leading player on the UK fintech stage, with a diverse range of businesses and innovative solutions.

Welsh success stories connected to this sector include key financial and tech services organisations such as Admiral, Confused.com, Go.Compare, LexisNexis Risk Solutions, Principality Building Society, Hodge, Yoello, Sero, Sonovate, Delio, Mazuma, Finalrentals, AGAM and many more. 

There are also a number of extremely exciting startups coming through the pipeline, thanks to the FinTech Wales Foundry programme and Wales’ collaborative ecosystem, which further enhance the environment for new companies. 

The collaboration between industry and academia, including Welsh Universities, colleges and training providers, also plays an essential role in developing the skills and talent required for Welsh fintech to grow.

FinTech Wales is the independent members’ association and champion of the fintech and financial services industry in Wales. Founded under the initial direction of Wealthify and ActiveQuote co-founder Richard Theo, it is now headed by Sarah Williams-Gardener, former Government Affairs Director at IBM and a member of the founding team at Starling Bank. 

The organisation offers key support to its network of fintechs and associate members, bringing together entrepreneurs and businesses of all sizes, as well as technology suppliers, innovators, universities and public sector bodies.

In addition to nurturing and supporting those businesses already in Wales, it aims to develop an ecosystem that will encourage and attract new fintech companies to startup or scale-up in the region. Ultimately, the goal is to make Wales a leading pillar in the global fintech community.

What’s next for Welsh tech?

These three sectors are a crucial part of Wales Tech Week, but there is more to the nation’s technology economy, with momentum also building in sectors such as blockchain, photonics and the creative industries. 

The enthusiasm, expertise and drive of the people growing these technology sectors in Wales is striking. By bringing them together collectively and leveraging their diverse perspectives, Wales Tech Week will amplify the potential for powerful collaboration and transformative action. 

Avril Lewis is Managing Director of Technology Connected and on the editorial board of the Wales Tech Week summit. To register for free tickets for Wales Tech Week or find out more about exhibiting opportunities, visit walestechweek.com

Main image courtesy of iStockPhoto.com