New Cardiff investment zone targets 4,000 jobs across region 2026

Key Points

• Cardiff Capital Region’s Investment Zone starts with three strategically selected areas in Cardiff and Newport.
• With funding of £160m by the UK Government for 10 years, with the backing of the Welsh Government.
• To attract investments worth more than £500m in the private sector.
• To provide employment to up to 4,000 highly skilled people within a decade, mainly from the compound semiconductor cluster.
• The three zones are Imperial Park and Tregedar Park area in Newport; Cardiff Parkway station and business park in St Mellons; and Central Quay and Atlantic Wharf in Cardiff Bay.
• There is a £4m training program for potential partners in delivering the right workforce.
• Business rates in this zone are shared 50/50 between the Cardiff Capital Region and the Welsh Government, compared to 100% for some zones in England and Scotland.

Cardiff (Wales Times) September 29, 2026 – A new Investment Zone for uk/local/cardiff/">Cardiff Capital Region has entered its delivery phase, with backers confident it will create up to 4,000 high‑skilled jobs over the next decade and attract more than £500m of private investment to south‑east Wales. The 10‑year programme is backed by £160m of UK Government funding and supported by the Welsh Government, and is being run by Cardiff Capital Region, the statutory body covering the region’s 10 local authorities.

Where are the Investment Zone sites and what will they deliver?

The Investment Zone consists of three strategic locations across Newport and Cardiff, chosen to build on existing strengths in compound semiconductors, advanced manufacturing, digital technologies and cyber security.

Imperial Park and Tregedar Park, Newport

The first element covers Imperial Park in Newport, home to major players in the compound semiconductor cluster including Vishay Intertechnology, IQE and KLA, alongside part of the adjoining Tregedar Park, where the Office for National Statistics is based. This area forms the core of a cluster that currently employs around 2,000 people and is targeting 6,000 high‑skilled staff by 2030, with companies in the cluster generating combined revenues of £1bn. The majority of the projected 4,000 new jobs in the Investment Zone are expected to come from growth in this cluster.

Cardiff Parkway and St Mellons business park

The second element is the proposed Cardiff Parkway new mainline train station and an integrated business park at St Mellons. Over time, the site could see up to one million sq ft of new commercial space developed. While a funding deal for the new station has yet to be agreed, engineering group Rolls‑Royce has appraised the site and considers it suitable for a major hub investment, according to reporting by WalesOnline. Rolls‑Royce’s submarine division already operates a satellite office nearby at St Mellons Business Park, and if the company were to invest at Parkway, the zone’s 4,000‑job target over 10 years could be exceeded, WalesOnline reported.

Central Quay and Atlantic Wharf, Cardiff

The third part of the zone covers the Central Quay regeneration scheme south of Cardiff Central train station and the Atlantic Wharf project in Cardiff Bay. Alongside plans for a new indoor arena, there is a masterplan for up to one million sq ft of mixed‑use development at Atlantic Wharf, WalesOnline reported. These sites are intended to expand research, development and advanced manufacturing capacity as well as supporting wider commercial growth in the city centre and bay area.

How will the Investment Zone be funded and governed?

The programme is funded by the UK Government and supported by the Welsh Government, with Cardiff Capital Region acting as the delivery body in partnership with Cardiff Council, Newport City Council and Cardiff University. A tripartite Memorandum of Understanding between Cardiff Capital Region, the UK Government and the Welsh Government was signed earlier in 2026 to formalise the arrangement, according to Business News Wales.

Cardiff Capital Region has said it expects the £160m public investment to leverage more than £500m in private sector funding over the 10‑year life of the programme. The zone is designed to unlock significant additional research, development and advanced manufacturing space to accommodate growing technology businesses and inward investors, Business News Wales reported.

However, in terms of new business rates generated within the zone, Cardiff Capital Region will only be able to retain 50% for reinvestment, with the Welsh Government taking the other half, WalesOnline reported. This differs from some UK Government‑backed investment zones in England and Scotland, where 100% business rates retention applies within zones, the outlet noted. Cardiff Capital Region, which has lobbied for 100% retention, is exploring the possibility of providing funding to zone projects by borrowing against expected future business rates through tax increment financing, but its scope will be limited by the current retention position, WalesOnline reported.

What do political and business leaders say about the zone?

Leader of Newport City Council and deputy chair of Cardiff Capital Region, Cllr Dimitri Batrouni, described the Investment Zone as a “landmark opportunity to accelerate growth, innovation and prosperity across South East Wales”. As reported by WalesOnline and Business News Wales, he said:

“While focused within Newport and Cardiff’s travel to work area, its benefits will be felt across all ten local authorities through new investment, stronger supply chains, enhanced skills provision and high‑value employment opportunities”.

Leader of Cardiff Council, Cllr Chris Weaver, said Cardiff, Newport and the wider region were already driving innovation in sectors that would shape the future economy, including semiconductors, advanced manufacturing, cyber security, creative industries and digital technologies. As quoted by WalesOnline and Business News Wales, he said:

“The £160m investment zone programme gives us a once‑in‑a‑generation opportunity to build on those strengths and attract hundreds of millions of private sector investment, supporting businesses to grow and innovate, attracting investment, and compete on a global stage”. He added: “Crucially, this can help create thousands of jobs, make our region more prosperous and resilient, and help drive growth for decades to come”.

Secretary of State for Wales Stephen Kinnock MP described the Investment Zone as an “engine room for high‑tech industry and innovation – driving new jobs and opportunities into communities across South East Wales”, according to WalesOnline and Business News Wales. He said it would build on existing talent and expertise in the region and support development of a highly skilled workforce capable of meeting industry demand, the outlets reported.

Adam Price, Cabinet Minister for Enterprise, Connectivity and Energy in the Welsh Government, said the launch marked a “defining moment for South East Wales”. As reported by WalesOnline and Business News Wales, he said: “By bringing together business, academia and government around our world‑leading semiconductor cluster, we’re turning opportunity into delivery and creating high‑skilled jobs, unlocking major investment, and building a sustainable, innovative future economy for the region”. He added that the zone would help boost growth, improve productivity, strengthen supply chain resilience and ensure public investment unlocked private sector confidence, the outlets reported.

Professor Wendy Larner, President and Vice‑Chancellor of Cardiff University, said the region was at a “strategic inflection point”, with university research capable of contributing to sustainable and inclusive economic growth, according to Business News Wales. Cardiff University will act as an anchor institution within the Investment Zone, the outlet reported.

Caroline O’Brien, chief executive of the Compound Semiconductor Applications Catapult in Newport, said the organisation had a clear focus on growing markets in AI and defence, Nation.Cymru reported. She said: “From our base in the Investment Zone, we help scale UK semiconductor companies, delivering long‑term economic benefit”. She added that several international partners were co‑located at the Catapult and that it was keen to attract more, the outlet reported.

What skills and infrastructure support is being put in place?

Cardiff Capital Region has launched early initiatives for the zone, including investment in infrastructure, targeted skills interventions and programmes designed to deepen local supply chains and increase business competitiveness, according to WalesOnline and Business News Wales. A £4m skills programme has now opened for delivery partners, aimed at developing the workforce required by growing technology and advanced manufacturing businesses and connecting local people with emerging career opportunities, Business News Wales and Nation.Cymru reported.

The programme is intended to provide additional space for research, product development and advanced manufacturing as part of efforts to increase the region’s capacity to accommodate technology businesses and inward investors, Business News Wales reported. While activity will be concentrated around the Cardiff and Newport travel‑to‑work area, the ambition is for investment to generate economic benefits across all 10 local authorities within Cardiff Capital Region through employment, skills and supply chain opportunities, the outlet said.

Background to the Cardiff Capital Region Investment Zone development

The Cardiff Capital Region Investment Zone is one of two investment zones planned for Wales, jointly announced by the Welsh and UK governments in 2024. It builds on the region’s established compound semiconductor cluster, which has been developed over more than a decade with support from public and private partners, and is recognised internationally for its concentration of expertise and companies in the sector.

The zone designation was secured in 2024, with initial planning work carried out by Cardiff Capital Region alongside Cardiff Council, Newport City Council and Cardiff University to identify strategic sites and priority sectors. The focus on compound semiconductors, advanced manufacturing and digital technologies reflects existing industrial strengths, including the presence of firms such as IQE, KLA and Vishay Intertechnology in Newport, and research capabilities at Cardiff University and the Compound Semiconductor Applications Catapult.

A formal tripartite Memorandum of Understanding between Cardiff Capital Region, the UK Government and the Welsh Government was signed earlier in 2026, setting out the governance and funding framework for the 10‑year programme. The £160m of UK Government funding is intended to act as catalytic capital to unlock private investment, expand innovation space and support skills development, with the overall goal of making south‑east Wales one of Europe’s most competitive locations for innovation‑led businesses.

Prediction: how could this development affect businesses, workers and communities in south‑east Wales?

If the Investment Zone delivers on its stated ambitions, businesses in south‑east Wales are likely to see greater access to research and development space, stronger links with Cardiff University and the Compound Semiconductor Applications Catapult, and improved infrastructure in key sites such as Newport’s Imperial Park and Cardiff’s Central Quay and Atlantic Wharf. For technology and advanced manufacturing firms, this could lower barriers to expansion, make the region more attractive for inward investment, and strengthen local supply chains, as outlined by Cardiff Capital Region and Welsh Government ministers.

For workers, the creation of up to 4,000 high‑skilled jobs over 10 years, alongside a £4m skills programme, could open new career pathways in semiconductors, digital technologies and advanced manufacturing, particularly for people in Cardiff, Newport and the wider travel‑to‑work area. If growth in the compound semiconductor cluster continues towards its 6,000‑staff target by 2030, the multiplier effect on related services and supply chains could extend opportunities to other parts of the 10‑authority region, as leaders from Cardiff and Newport councils have suggested.

For local communities, the regeneration of sites such as Central Quay and Atlantic Wharf, together with the potential development of Cardiff Parkway, could bring additional commercial activity, improved transport links and new mixed‑use development, WalesOnline reported. However, the overall impact will depend on the pace of private investment, the resolution of funding arrangements for infrastructure such as the new station, and the ability of the 50% business rates retention model to support reinvestment at the scale envisaged by Cardiff Capital Region, as highlighted in reporting by WalesOnline.