UK’s semiconductor strategy put at risk, industry leaders warn

The government s failure to produce a strategy for the vital semiconductor industry puts Britain s status as a leader in the tech sector at risk, sector stalwarts have warned.

In a letter to the prime minister, signatories such as Hermann Hauser, founder of Acorn, Hermann Hauser, the founder of Acorn, and industry groups TechUK and Global Tech Advocates expressed their frustration at the lack of a plan after two years of waiting.

Semiconductors are the vital components that power our lives every day. Britain has traditionally been a leader in the field — home to world-leading chip design companies and leaders in the compound semiconductor segment, they wrote. The confidence in the government's ability to address the vital importance of the industry is steadily declining with each month of inaction. The shortage of semiconductors halted manufacturing in some sectors and led to a scarcity of electronic goods, though this raised awareness of their critical importance.

The US has put $50 billion behind its microchip industry and the EU has put in more than €43 billion, with the goal of doubling its market share in semiconductors to 20 per cent by the year 2030.

The issue has relevance to geopolitical affairs as well, according to the letter. Taiwan produces 90 per cent of the world's advanced chips and has a significant influence as the most fruitful manufacturer of semiconductors. Given that the nation is at the centre of tensions between China and the West, it is important that global dependence on Taiwan be addressed. In a separate intervention, TechUK, the industry trade body, has set out a five-point plan of what it would like to see from the government strategy whenever it emerges, asking the government to focus on the UK's strength in semiconductor design and intellectual property. The plan includes encouraging investment and addressing skills and funding gaps.

If the UK is to become a science and technology superpower, we need to be a global player in the semiconductor industry, it said.

A spokeswoman for the Department of Digital, Culture, Media and Sport said the strategy will be published as soon as possible.