UK fails on semiconductor support
The UK’s spending review has given little support for semiconductors in the UK according the industry association TechWorks.
“I’m disappointed.” Said Charles Sturman, CEO of TechWorks which represents the fab operators in the UK. “Frankly there is very little in the statement of importance to semiconductor in the UK and as the voice of the industry in the UK have made some very clear specific proposals for short term support that is apparently falling on deaf ears. Semiconductors will become a fundamental building block of society and with that in mind it reasonably to say any developed economy that want sa seat at the table, or even a seat in the G7, so on that basis the government has failed to recognise the economic importance of supporting the semiconductor industry in the UK
The limited support is provided through the UK Investment Bank for Net Zero and Levelling Up projects and an energy support scheme.
“We have announced plans to make it easier for semiconductor manufacturers to grow and stay in the UK,” said the government. “The Chancellor clarified the government’s priorities for the UK Infrastructure Bank (UKIB), to ensure it is able to invest in critical supply chains where the Bank’s strategic objectives can be met, including semiconductor manufacturing. The Bank are actively engaging with the sector and exploring market opportunities. UKIB has £22 billion of financial capacity.”
“Making chips isn’t cheap, and it takes a huge amount of energy. So, as well as unlocking new sources of funding, the British Industry Supercharger scheme will bring energy prices for eligible British chip makers in line with those in other major economies around the world.”
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This follows a detailed proposal paper previously sent to the Treasury.
“In that paper we saw an opportunity to do things that relatively straightforward with a specific requires targeted at a specific department,” said Sturman. “With the majority of the fabs in the UK, the overwhelming message was to scale and increase capacity, they need support and help. The government could do something quite helpful. I sent a copy of the paper to the Chancellor but it appears to have fallen on deaf ears.”
“The only relevant pieces in the Statement were the full expensing being made permanent and I’m not sure reconditioned equipment qualifies. It could cost £20m to £30m to upscale a fab, it’s not enough, it doesn’t change anything, In terms of the energy it depends on the contracts you have negotiated, and so if gases, water and waste treatment,” said Sturman.
“There was also no further detail on the apprenticeship scheme or the investment regions.”
TechWorks is also resurrecting the Power Electronics UK. “We are reconvening this as a reboot because there’s so much more now in renewable energy, consumer electronics, net zero. We will wait to see how broad the flexibility of net zero can be stretched at UKIB.”
The UK finance ministry had already announced a £500 million investment in AI compute over two years, for the Isambard AI system in Bristol, Dawn in Cambridge and XX in Edinburgh.
Five new Quantum Missions are in the £2.5bn Quantum Strategy, are aiming for accessible, UK-based quantum computers capable of running 1 trillion operations by 2035 to support applications that provide benefits well in excess of classical supercomputers.
By 2035 will also see the world’s most advanced quantum network at scale, pioneering the future quantum internet.
By 2030, mobile, networked quantum sensors will be used for critical infrastructure in the transport, telecoms, energy, and defence sectors. Every NHS Trust will benefit from quantum sensing-enabled medical systems for early diagnosis. Quantum navigation systems, including clocks, will be deployed on aircraft, providing next-generation accuracy for resilience that is independent of satellite signals by that time.
The government is also adopting the recommendations of a recent independent review of university technology spinouts led by Irene Tracey, Vice-Chancellor of Oxford University and Andrew Williamson, Managing Partner of Cambridge Innovation Capital. It is to provide £20 million to foster more spin-out companies and is recommending 10-25% university equity for life sciences spinouts, and 10% or less for less IP-intensive sectors, common in software. However it does not mention semiconductor technologies.
Alongside the Department for Business and Trade’s battery strategy, the Chancellor announced £50 million for developing the UK’s battery world-class capabilities, from R&D to industrialisation as well as £11 million to fund collaborative R&D in battery development incorporating technologies such as AI.
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