Government unveils £1bn strategy to boost UK’s global strengths in semiconductors

A new 20-year plan to secure the “world-leading” strengths of the UK’s semiconductor industry has today (Friday May 19) been unveiled by the Government.

The National Semiconductor Strategy sets out how up to £1bn of government investment will boost the UK’s strengths and skills in design, R&D and compound semiconductors, while helping to grow domestic chip firms across the UK.

Working in tandem with industry, investment made by the government will drive research, innovation and commercialisation through the sector, helping to deliver products from lab to market.

It comes as the Prime Minister is at the G7 leaders’ Summit in Japan for discussions on strengthening our tech collaboration with like-minded economies and strengthening supply chains for critical technology like semiconductors.

Semiconductors are said to be “vitally important” for the modern world we live in, being an essential component for the functioning of almost every electronic device we use. From phones and computers to ventilators and power stations, nearly every piece of technology in the world depends on them.

Over a trillion semiconductors are manufactured each year, with the global semiconductor market forecast to reach a total market size of $1tn by 2030. Semiconductors also underpin future technologies, such as artificial intelligence, quantum and 6G.

The strategy focuses on the UK’s particular areas of strategic advantage in the semiconductors sector, semiconductor design, compound semiconductors, and R&D ecosystem, supported by UK universities from Cambridge to Cardiff and Manchester to Edinburgh demonstrating global leadership in this space.

To support the growth of the sector in the UK, the government will invest up to £200m over the years 2023-25 to improve industry access to infrastructure, power more research and development and facilitate greater international cooperation.

The strategy builds on the consistent support the government has provided for the semiconductor industry, having provided £539m in grants for research and £214m directly to SMEs in the sector across the last 10 years, as well as funding 450 PhD students since 2017.

Prime Minister Rishi Sunak commented: “Semiconductors underpin the devices we use every day and will be crucial to advancing the technologies of tomorrow. Our new strategy focuses our efforts on where our strengths lie, in areas like research and design, so we can build our competitive edge on the global stage.”

By Matthew Neville – Senior Correspondent, Bdaily

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