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Haylo Labs acquires Plessey in £100m growth plan

Haylo Labs acquires Plessey in £100m growth plan

Haylo Labs has acquired UK chipmaker Plessey in China-funded deal. The acquisition cleared national security review and injects new capital into one of Europe’s oldest semiconductor companies, raising questions over foreign funding in critical technologies and promising major expansion for the UK’s micro-LED industry.

Haylo Labs has completed the acquisition of Plessey Semiconductors, the Plymouth-based micro-LED specialist with a century-long legacy in British chipmaking. The deal, announced on Tuesday, is backed by up to $100 million in financing from Chinese technology company Goertek, provided through a Hong Kong subsidiary.

The funding, structured as a five-year loan, includes provisions for Goertek to claim up to 25 per cent of Plessey’s value in the event of an initial public offering or sale. Despite concerns about foreign influence in strategic industries, the transaction passed scrutiny under the UK’s National Security and Investment Act 2021. Legal observers noted that financing arrangements that stop short of direct ownership typically fall outside the Act’s control thresholds.

Founded in 1917, Plessey is one of Europe’s longest-established semiconductor companies and has become a key supplier of advanced micro-LED display technology. It has partnered with Meta and other augmented-reality developers on some of the brightest display components on the market, including prototypes capable of reaching six million nits.

Haylo Labs, led by entrepreneur David Hayes and former Snap executive Claire Valoti, said it intends to invest £100 million in Plessey over the next five years. The plans include scaling research, development, and production capacity, alongside expanding its UK workforce. Hayes described the ambition as “building a very large UK public company,” with the goal of establishing a multibillion-dollar leader in micro-LED and optical computing.

Plessey currently employs around 270 people in Plymouth. Local leaders welcomed the acquisition as a commitment to skilled jobs in the South West and a chance to strengthen Britain’s semiconductor base.

The deal nonetheless highlights a recurring tension in UK industrial policy: how to balance the growth ambitions of home-grown technology companies with sensitivities around foreign capital, particularly from China. The UK has previously intervened in sales such as Newport Wafer Fab, citing national security grounds. Haylo’s acquisition, however, demonstrates how financial structures short of equity stakes can navigate the regulatory landscape while still bringing in significant overseas funding.

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BQ

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