The UK’s newly announced Industrial Strategy backs Welsh strengths from aerospace in the north to the world-first semiconductor cluster in the south. But just as this opportunity gathers momentum, the talent pipeline needed to deliver it faces growing strain. Recent visa restrictions, along with reduced access for international students, may risk cutting off a crucial future skills source.

The recently announced semiconductor centre in Swansea provides a blueprint for collaboration between academia, business, and government, creating a direct skills pipeline from lab to factory floor. Embedding more of these centres across the country, especially in underserved regions, can help make Wales an engine of inclusive growth and innovation.

At this pivotal moment, there are a number of proactive steps Wales can take to stay ahead of the curve and close emerging skills gaps.

Investing in domestic upskilling

The first of these critical steps is focusing on upskilling the domestic workforce through targeted training programmes, apprenticeships, and clearer pathways into high-tech careers.

The Welsh Government’s Flexible Skills Programme, which covers up to 50% of accredited training costs, up to £50,000 per application, is already proving one of the most effective tools in supporting this ambition.

Wales’s Government has increased its investment in the Flexible Skills Programme from £1.3 million a year to over £7.5 million, providing thousands of individual places on upskilling or re-skilling training courses.

The Programme delivers training in areas including digital and cyber skills, engineering, and green technologies, and much more. Continued investment in tech upskilling and the creation of career pathways via the Flexible Skills Programme will help to drive Wales’s workforce forward.

Creating pathways for international students

Another important action is capitalising on the rising global recognition of Welsh universities. In 2022, just 21% of prospective international students were familiar with Wales, but by 2025, that figure more than doubled to 44%, with especially strong growth in priority markets such as India and the U.S.

Institutions like Cardiff University, Swansea University, and Bangor University are already producing valuable research in compound semiconductors, AI, and photonics. The challenge now is turning academic excellence into an industry-ready workforce.

While international student numbers fall in England, Wales is bucking the trend and could channel this momentum into long-term economic impact, if supported by a coherent migration policy.

Expanding workforces

An important element of overseas expansion is migration policy. Clarity from the UK Government, specifically around post-study work rights and the future of the Graduate visa, will be crucial to sustaining Wales’s gains in international student recruitment, leading to a boosted workforce.

New visa pathways such as the High Potential Individual route, alongside the UK’s recent £54 million global talent scheme and a £25 million boost for top AI specialists, position Wales to compete internationally. Meanwhile, strategic marketing and support plans could help Welsh businesses and universities to leverage existing visa frameworks to their advantage.

Even with an expanding domestic and university-trained talent pool, Wales cannot meet demand alone. The global skills race is intensifying, and talent mobility is a key competitive advantage.

A recent report by the All-Ireland Business Foundation, the University of Limerick, and Mauve Group found that 40% of organisations were actively looking to scale overseas, and nearly 60% of organisations already have an export plan in place. Ireland’s model suggests expanding operations globally or outsourcing parts of the value chain may be another way to solve the skills puzzle, scale up efficiently, reach new markets and create a rising number of Welsh micro-multinationals.

Wales has the momentum, assets, and ambition to lead in semiconductors and advanced tech. But realising this opportunity will require cohesive policy, strategic infrastructure investment, and a bold, global approach to talent mobility.

A combination of domestic upskilling, international student recruitment, strategic use of visa routes, and bold global expansion could give Wales the competitive edge it needs. Now, a coordinated, long-term approach is required, connecting the dots between policy, education, and enterprise.