Economy minister Vaughan Gething made his comments following a successful trade mission to California's Silicon Valley.
Last year, one of the city's most prestigious businesses, SPTS Technologies – part of the US-based KLA group – was given planning permission by the council to expand its Welsh headquarters.
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It is relocating from a site off Ringland Way to a new location in Imperial Park.
Councillor Mudd said: "I'm pleased that the minister has reaffirmed support for the expansion of this important sector and that his plans include updating infrastructure on the Celtic Lakes site and skills development.
"I also back his call for the UK government to prove its commitment with a fully-funded strategy to make the sector in Newport a global leader in a technology used by people across the world that is providing hundreds of high quality jobs.
"Newport's semiconductor cluster is very much an industry for today and tomorrow, and it must not be left behind. The potential is enormous and must be realised, not just for the benefit of the city and the region but for Wales and the UK."
