Haylo Labs, part of London-based investment group Haylo Ventures, has pledged to invest more than £100m into the UK chip ecosystem following its acquisition of Plessey Semiconductors.
Plessey, based in Plymouth, develops chips for a variety of microLED display devices. One of Europe’s oldest firms in the sector, the company was founded in 1956.
The deal will see Haylo Ventures founding partner David Hayes assume the role of chief executive of Plessey as it attempts to strengthen its and the UK’s position in the global chip industry.
“This is a defining moment for British tech. Plessey has built the world’s most advanced microLED platforms, with the highest efficiency to date, and is one of the only facilities in the world that can offer customers an end-to-end design and manufacturing facility with technology and talent that surpasses rivals anywhere globally,” Hayes said.
“This acquisition is not just about backing British innovation — it’s about unlocking its global potential in one of the fastest-growing markets over the next decade.”
As part of the acquisition deal, Haylo has committed to major investments in manufacturing capacity as well as to grow the workforce in “Plymouth and beyond”. Plessey currently has a team of 270.
“This acquisition is fantastic news for Plymouth and the UK’s technology sector,” commented Plymouth MP Luke Pollard.
“Plessey is a true British success story with a rich heritage, and this significant investment promises to secure and create skilled jobs in the region while positioning the UK at the forefront of semiconductor innovation.”
The precise terms of the acquisition have not been revealed, however, the deal was advised by international law firm Addleshaw Goddard and included financing from Goertek, a Chinese tech giant.
The inclusion of Goertek, which according to The Times will become Plessey’s “exclusive manufacturing partner”, presents a layer of complexity to the deal.
The international semiconductor industry is among the most geopolitically challenging, with China engaged in a chip arms race with the US, Europe and other Asian powers – notably Japan, South Korea and Taiwan.
Despite Goertek’s involvement, the deal made it through the scrutiny of the National Security and Investment Act, passed in 2021 to prevent business takeovers that risk ceding critical resources to potential harmful buyers.
The act previously prevented the sale of chip plant Newport Wafer Fab to Netherlands-based and Chinese-owned firm Nexperia.
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