In-Short
- techUK calls for UK government action to maintain semiconductor industry competitiveness.
- UK’s semiconductor strengths in design and IP are at risk without strategic investment.
- Report recommends establishing a National Semiconductor Centre and expanding R&D tax credits.
- Urgent action needed to keep pace with global semiconductor investments by other nations.
Summary of the UK Semiconductor Industry’s Current State
The UK semiconductor industry is at a pivotal point, with techUK emphasizing the need for government intervention to sustain its global standing. Laura Foster of techUK highlights the urgency of implementing the National Semiconductor Strategy to spur investment and innovation, ensuring the UK’s stronghold in this essential sector. Semiconductors, which are integral to a wide array of technologies, present a market opportunity that could reach $1 trillion by 2030, making it imperative for the UK to secure its leadership position.
Challenges and Strengths
Despite the UK’s historical leadership in semiconductor design and IP, particularly in Cambridge, challenges such as underinvestment, skill shortages, and insufficient sector-specific support threaten its position. The techUK report underscores the need to capitalize on existing strengths to remain competitive on the global stage. The industry, which generated £12 billion in turnover in 2021, faces hurdles including high costs, limited domestic funding, and a dependency on international talent.
Strategic Recommendations
The report outlines 27 recommendations across six areas, advocating for the creation of a National Semiconductor Centre, expansion of R&D tax credits, and the establishment of a Design Competence Centre. It also calls for initiatives to nurture skills and forge global partnerships to enhance the UK’s role in the semiconductor supply chain.
Need for Immediate Action
With countries like the US, China, and the EU investing heavily in their semiconductor industries, the UK must act swiftly to avoid falling behind. The European Chips Act’s €43 billion investment exemplifies the global race for semiconductor dominance. The UK’s potential as a global leader in semiconductors hinges on persistent investment, strategic planning, and collaboration across government, industry, and academia.
Conclusion and Further Reading
The techUK report concludes that the UK’s semiconductor ambitions are crucial for achieving not only rapid growth but also a secure and resilient economy. For more detailed insights, readers are encouraged to view the original article.
Footnotes
Image credit: Rocco Dipoppa on Unsplash
