UK’s Semiconductor Strategy

The UK government has recently announced a significant investment in the domestic semiconductor industry, aiming to bolster its innovation and competitiveness. However, the announcement has faced criticism for falling short compared to the spending race witnessed in the US and EU.

Investment Amount: Up to £1bn

The UK government plans to invest up to £1bn in the domestic semiconductor industry. While this investment demonstrates the government’s commitment to supporting the industry, critics argue that the figure is insufficient, noting that it is even lower than the cost of a basic semiconductor plant.

Global Competition: US and EU

The US and EU have made considerably larger investment commitments in the semiconductor industry. The US pledged a substantial $52bn (£42bn) in subsidies for semiconductor manufacturing and research, while the EU formulated a €43bn (£37bn) investment plan, including subsidies from member states and contributions from the private sector.

Semiconductors: The Brains of Modern Technology

Semiconductors, also known as microchips, play a vital role in modern technology. They serve as the “brains” of electronic devices, powering various applications, from smartphones and cars to power stations. Given their ubiquitous presence in our daily lives, the development and advancement of the semiconductor industry are of paramount importance.

UK Semiconductor Strategy: Focusing on Design and Research

The UK’s national semiconductor strategy will concentrate on leveraging the country’s existing strengths in technology, particularly in design, research, and development. The government’s aim is to build a competitive edge on the global stage by capitalizing on these areas.

Concerns over Fragility and Supply Chain

The global semiconductor industry has aced increased fragility due to the COVID-19 pandemic and concerns over China’s plans involving Taiwan, the largest semiconductor manufacturer globally. The UK’s investment strategy aims to mitigate supply chain threats by collaborating with countries such as the US, Japan, and South Korea.



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