However, the chip factory deal also underscores the growing importance of semiconductors in military supply chains.
Semiconductors are critical to everything from smartphones to modern fridges and cars. In the military, they underpin precision missiles, fighter jets and communications equipment.
They are also seen as critical to future technologies, including artificial intelligence, quantum computing and hypersonic missiles.
The Telegraph first revealed in May that the site’s future was in doubt and undergoing a strategic review that could lead to the plant being sold.
In company accounts, Coherent said it had issued a last-time-buy notice to other customers warning them products would soon be discontinued, although Apple was not named in the accounts.
Before that, the group had warned that the decision by Apple to stop using the company as a supplier “places the ongoing viability of the business in doubt”.
But on Friday the Ministry of Defence said: “This strategic investment will ensure the facility is capable of producing gallium arsenide semiconductors as well as more powerful semiconductors in the future, which will include the latest technology.
“This Government recognises the strategic importance of semiconductors as a critical technology for the future of the UK and a significant enabler of the government’s growth and clean energy missions.
“Work has already started to implement best practice governance that will ensure appropriate financial oversight to secure the company’s future success.”
Losing a contract from Apple can often be disastrous for suppliers.
The British semiconductor company Imagination Technologies lost half of its value and was eventually sold after Apple said it no longer planned to use the company’s graphics chip designs in 2017.
Other companies including Volex and Wolfson Microelectronics have suffered share price declines after losing contracts.