Ongoing plans for a high-tech “corridor” between Newport and Cardiff could create 4,000 jobs and develop the site as a leader in advanced manufacturing.

The partnership, overseen by the Cardiff Capital Region, is one of ten so-called investment zones set up by the UK Government and will receive £160 million over the next ten years.

Newport City Council cabinet members agreed this week to a new memorandum of understanding with Cardiff Council and the capital region’s corporate joint committee to set out how that money will be invested.

“This is an important, high-profile opportunity for Newport – we have the opportunity to unlock and accelerate the potential of the semiconductor ‘cluster’ in our city,” said Cllr Dimitri Batrouni, the city council’s leader.

It is expected the £160 million will be spent flexibly on capital and revenue projects designed to strengthen the area’s growing importance in producing semiconductors.

According to a Newport Council report, this semiconductor ‘cluster’ is a “strategic economic asset for the city”, which “powers next-generation computing and enables critical advancements in AI, data processing, electric vehicles, [and] green technologies”.

The investment zone programme is aimed at creating jobs, attracting investment and cementing western Newport’s importance in the sector.

The programme could bring as much as £500 million of private-sector investment to the area, according to the council report.

Investment zones will also include three tax sites where the capital region will be allowed to retain a share of all new business rates for a 25-year period.

Newport’s Imperial Park is expected to become one of those sites, alongside two areas in the capital.

Cllr Batrouni told cabinet colleagues Newport city centre is also “noted as a potential strategic hub for digital and data-related developments”.

“By supporting high-tech advanced manufacturing jobs we are ensuring that our young people have skills to meet growing demand in this sector, [and] future employment opportunities for our residents,” he added.

“This is huge for Newport – potentially 4,000 jobs, millions of pounds of investment, and how that has a knock-on effect,” said Cllr James Clarke, the cabinet member for regeneration.