The semiconductor industry is projected to be worth in excess of $1 trillion by 2030, so securing the UK’s position in this rapidly developing sector will be essential for economic growth, technological leadership, and national resilience.
The National Semiconductor Strategy, which was published in 2023, incorporated a number of recommendations from techuk’s original UK Plan for Chips.
However, as techuk notes in its latest report progress to date has been incremental, so to ensure the UK capitalises on its semiconductor potential, decisive action is now required.
To that end, techUK has outlined three key missions the UK Government must pursue to position the UK as a global leader in semiconductors:
Turn current strengths into leadership
The UK has globally competitive capabilities in design and Intellectual Property (IP), R&D and compound semiconductors. To establish global leadership, the UK must build on these strengths with targeted policies and financial support, ensuring that high-potential, globally competitive sub-sectors can scale and thrive.
Ensure the UK’s strengths have greater access to investment
Despite having the world’s third-largest tech sector, many UK semiconductor start-ups struggle to secure large-scale private investment. The UK must foster a dynamic investment ecosystem that supports semiconductor innovation, providing access to both private capital and public funding. A strong investment climate will enable businesses to grow, commercialise new technologies, and compete on the global stage.
Capitalise on UK strengths in the global supply chain by forming strategic partnerships with peer countries
The semiconductor supply chain is deeply interconnected, with global dependencies on UK expertise and vice versa. The UK Government must leverage these interdependencies by forging strategic international partnerships, fostering joint research and development, and securing investment and innovation opportunities. By strengthening global collaborations, the UK can reinforce its role as a key player in the semiconductor landscape.
To drive these missions forward, techUK has proposed a six-point delivery plan.
- Retain our position as a global leader on chip design intellectual property
- Support applied R&D and manufacturing
- Incentivise investment into new areas of growth, including advanced designs, emerging technologies, and end user readiness.
- Promote innovation and support scale ups through access to markets and private capital
- Nurture the skills we need for the chips industry
- Strengthen the UK sector through global partnerships
The UK Government needs to act decisively in implementing this plan, if it wants to ensure the UK remains competitive in the rapidly evolving semiconductor industry, according to techUK.
“Success will require bold action and sustained commitment,” while the UK Government needs to, “accelerate the implementation of the National Semiconductor Strategy,” said Laura Foster, Associate Director for Technology and Innovation, techUK.
Commenting on the report Richard Price, CTO, Pragmatic Semiconductor, added, “techUK rightly emphasises the urgent need to accelerate the UK’s National Semiconductor Strategy. Core value creation lies in semiconductor manufacturing, which has significant potential to boost the UK’s economy.”
He went on to warn that, “While Europe and the US are already investing heavily; competitive incentives in areas such as capital investment are urgently needed to level the playing field.”
Sadly, we’ve heard all this before. techUK and Richard Price are stating the obvious.
‘Too little and too late’ were the responses of many to the original Strategy when it was first published – but at least it was a strategy and recognised the value of the UK in the semiconductor supply chain.
Government can’t be blind to the importance of the sector, but once again it appears to be falling short on delivery. We can only hope that the delayed Industrial Strategy will seek to ignite the sector and finally deliver on the Strategy which is already two years old.
