UK chip strategy will include taxpayer funding

UK chip strategy will include taxpayer funding

Business news |
By Peter Clarke

The creation of a semiconductor strategy for the UK is close to completion and will include direct funding by government of startup and scale-up companies as well as incentives for venture capital investment, according to Bloomberg.

The plan could be signed off by Culture Secretary Michelle Donelan and published within weeks, Bloomberg said citing unnamed government officials as its sources.

As part of the plan the government intends to set up a semiconductor taskforce to coordinate financial support for the ramping up of UK manufacturing of compound semiconductors in the next three years, Bloomberg said.

The UK had been working on a plan to develop Newport Wafer Fab as a source of compound semiconductors in South Wales prior to it being acquired by Chinese owned power semiconductor company Nexperia NV. The government is now trying to unwind that deal (see Nexperia lawyers up for fight over Newport Wafer Fab).

An overall figure has not been agreed with the Treasury but the plan is expected to be worth a single-digit billions of pounds, Bloomberg said. This compares to the €43 billion spend outlined by the European Commission and the $52 billion chip manufacturing budget approved by the United States.

The taxpayer money would be distributed through existing institutions such as the British Business Bank, Innovate UK and the National Security Strategic Investment Fund, the report quoted officials as saying.

Related links and articles:

TechUK offers chip plan to UK government

Nexperia lawyers up for fight over Newport Wafer Fab)

Need for UK semiconductor strategy is urgent, says letter to PM

UK should back compound semis, says government report

Nexperia forced to sell Newport Wafer Fab stake

IQE has vision for billion-pound foundry in Newport

UK government opens inquiry about domestic semiconductor industry

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