UK pours £1 billion in semiconductor industry funding

The UK government recently officially announced the National Semiconductor Strategy with the ambition to enter the list of countries that dominate the chip manufacturing industry. The new investment outlines three main goals: Accelerating growth in the domestic chip sector, minimizing the risk of supply chain disruptions, and protecting national security.

However, despite the UK's commitment to invest £1 billion over the next decade, most industry experts have expressed concern about the strategy's overall effectiveness compared with other massive funding by the United States. United States and EU allocation.

The new semiconductor strategy reflects the UK government's commitment to increasing investment in the manufacturing industry, domestic chip research, addressing supply chain gaps and above all ensuring National security. The majority of the investment will be dedicated to the National Semiconductor Infrastructure Initiative fund. The strategy focuses on accelerating the search for industry talent and providing access to prototypes, tools and business support for local companies.

Around £200 million will be allocated between 2023 and 2025 to advance efforts to access infrastructure, energy research and development and international cooperation.

On the other hand, to pursue international cooperation, the UK and Japan established a semiconductor partnership that focuses on strengthening the chip industry in both countries. Japan has committed substantial financial support to companies establishing a presence in the country. As a first step, the UK's Research and Innovation project will work with the Japan Science and Technology Agency to expedite a joint investment of up to £2 million focusing on research into phased semiconductors. beginning next year.

Although some concerns have been raised, the overall industry response to the UK Semiconductor Strategy has been cautiously optimistic. Rene Haas, Arm CEO, expressed optimism that this strategy will significantly support the UK's role in the global supply chain for next-generation technology. The only issue is the impact of spreading the investment over many years, and whether that will be enough to make a significant difference.

Marvin Fry

Update 27 June 2023