The British government has taken a focused approach to revamping the semiconductor industry and will build on its strengths such as the design and production of non-silicon wafers and intellectual property rights.
On Friday, May 19, Great Britain announced its £1 billion ($1.2 billion) support for the semiconductor industry. With this move, the United Kingdom joins the race with the United States and the European Union to strengthen its domestic capabilities in the chip industry and reduce its dependence on foreign players.
The investment is part of the country’s 20-year strategy for semiconductors, after facing lengthy delays in the past. Moreover, it also outlines the UK’s plan for securing chip supplies as well as protection against other national security risks.
The strategy, unveiled on Friday, includes a set of measures that will provide a boost to Britain’s domestic chip sector. In addition, you will also provide national security while mitigating the risk of supply chain disruptions. Also, with this step, the UK plans to increase cooperation with international partners.
Earlier this week, the UK struck a deal with Japan to boost cooperation between the two countries in semiconductors and defence. Over the next two years between 2023 and 2025, the UK government plans to invest £200m and expand its commitment to £1bn over the next decade.
The funding will also help improve the talent pipeline along with providing access to prototypes and tools, as well as business support. Speaking about the development, British Prime Minister Rishi Sunak He said In the current situation:
“Semiconductors underpin the devices we use every day and will be essential to developing the technologies of tomorrow. Our new strategy focuses our efforts on where we are strong, in areas such as research and design, so that we can build our competitive advantage on the global stage. By increasing the capabilities and flexibility of the world’s leading semiconductor industry, We will grow our economy, create new jobs, and stay ahead of new technological breakthroughs.”
benefit from their expertise
The UK has established an advisory committee comprising figures from industry, government and academia to collaborate on joint solutions and implementation. Rather than taking the path of massive spending commitments as in the case of the US and the EU, the UK should take a different approach to strengthening the areas where its expertise lies.
The UK has no plans to build mega-semiconductor plants like those being built by Taiwanese chip giant TSMC. Instead, it will focus on other parts of the semiconductor industry such as the design and production of non-silicon wafers and intellectual property rights.
The UK was due to launch its semiconductor strategy last year, but has faced a series of delays amid political instability in the country. On the other hand, the United States and the European Union have already pledged billions of dollars.
Britain is a major player in the global chip market, focusing on design, intellectual property, research and manufacturing of advanced composite semiconductors. It owns valuable semiconductor assets, including a much-sought-after chip designer arm, which is based in Cambridge and licenses the chips used in nearly 95% of the world’s smartphones. In addition, the country has made significant contributions to the development of ultra-thin semiconductor chips using graphene.
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