TLT acts for CSA Catapult on its joint venture to support growth of the semiconductor sector in Wales and across the UK

TLT has advised (Compound Semiconductor Applications) CSA Catapult (the UK’s authority on compound semiconductor applications and commercialisation) on its new joint venture with the Welsh Government and US-based Cadence.

The new venture will leverage electronic design automation (EDA) software, expertise and artificial intelligence (AI)-driven integrated circuit design solutions from Cadence Design Systems, Inc. with CSA Catapult’s advanced facilities and testing capabilities, backed by the Welsh Government to create technological breakthroughs in the UK semiconductor industry, which is rapidly evolving alongside the meteoric rise of AI.

The joint-venture will deliver a dedicated semiconductor design centre creating over 100 jobs for UK graduates in the next five years, contributing an estimated £34m to the UK economy and helping deliver the UK Government’s industrial strategy.  

The EDA tools infused with AI and machine learning will promote the chip rollout in the UK to increase sovereign AI technology capability (from semiconductor design, training, simulation, design verification, emulation and prototyping to finally, chip rollout).

TLT has a specialist fast-growth and AI-focused team of lawyers who advised on the equity and financing aspects of the joint-venture. The team was led by Corporate Partner Adam Kuan and Managing Associate Mumuksha Singh, with support from Associate Sam Foley, and Trainee Robbie Marshall. The deal also required cross-practice expertise from our banking team (Steve Downey, Hugo Khan) and competition, regulatory and trade team (Miles Trower, Caroline Ramsay, Nicola Mead-Batten (CRP) and Sabrina Kapur). Various other specialist TLT teams provided invaluable support throughout the transaction.

Commenting on the deal, Adam Kuan, Corporate Partner at TLT said: “The semiconductor industry remains resilient in the face of other economic headwinds with the rapid deployment of artificial intelligence technologies continuing to drive activity and innovation. This new venture will bolster the local semiconductor ecosystem in Wales and provide a pipeline of skilled graduates to meet growing demand for high-tech roles across various industries. This was a terrific opportunity for TLT to demonstrate its continuing involvement in the UK digital sector, and we were delighted to have advised CSA Catapult on this joint venture.”

Nick de Figueiredo, Head of Legal at CSA Catapult added: “It was a pleasure working alongside TLT to finalise this innovative joint venture. With multiple parties involved, both domestic and international, there was a potential for this to be a challenging process. However, thanks to TLT’s expertise and coordination the process concluded smoothly and successfully.