UK publishes long delayed Semiconductor Strategy – updated
The UK government has published a summary of its long delayed semiconductor strategy with £200m (€230m) of funding over the next two years, which maintains the current level of investment.
The National Semiconductor Strategy has still to be published in full, but the summary talks of investment of up to £1bn over the next ten years, or £100m per year. Adjusted for inflation, this is the same as the last decade. Key details on implementation will not be published until the autumn.
The target is to improve access to infrastructure for prototype development, boost research and development and compound semiconductors and facilitate greater international cooperation, particularly with Japan where the UK government signed a cooperation deal yesterday. This could potentially give access to the 2nm fab being built by Rapidus with IBM and TSMC.
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However the funding commitment of £200m over three years is flat in real terms. Funding was £539 million in grants for research and £214 million directly to small and medium sized companies in the last 10 years.
There will also be a Semiconductor Advisory Panel, with the former CEO of Dialog Semiconductor Dr Jalal Bagherli as co-chair. Other members have yet to be announced in June, but the UK government expects the panel will speak on behalf of the sector and provide advice and feedback.
“To compete on a global stage, it’s critical that we invest in UK’s leading research and development, an expanded talent pipeline, and provide a differentiated manufacturing infrastructure,” said Bagherli.
“By doing so, we enable a thriving environment for innovative semiconductor start ups whilst ensuring that our domestic supply chains are robust and resilient,” he said.
“I am expecting to have a seat at the table when this advisory group is set up,” said Charles Sturman, new CEO of TechWorksUK which includes the NMI industry association of fab operators.
“We are a grassroots organisation, we don’t do lobbying but we are engaging to push the agenda forward. Now they see semiconductors as strategic. Now that a strategy has been put in place there’s really good opportunity. We used to have a good ecosystem and we don’t so much now, so this is the start of the recognition that we should rebuild our ecosystem around semiconductors,” he said.
“We have unique capabilities across the UK, in compound semis, graphene, plastic, silicon carbide, photonics, some really interesting capabilities. We also have the design community, automotive and security so the trajectory I see is growing our breadth in other areas, AI, quantum robotics, all fuelled by deeptech and semiconductors. The future growth I see in deeptech is these new areas so the UK is in a good position.”
TechWorksUK is part of a study commissioned by the Department for Science, Innovation and Technology is looking at the best way to establish the Infrastructure initiative and this will report its findings in the autumn.
“We are working much harder with government and we were involved in some of the discussion as and we are now working with other groups on the feasibility project which runs in parallel,” said Sturman.
UK Research and Innovation will work with the Japan Science and Technology Agency on a joint investment of up to £2 million in early stage semiconductor research next year. This will support UK and Japanese researchers to work together on fundamental semiconductor technologies.
The strategy also highlights the security risks of foreign ownership of key infrastructure, indicating that the UK government intends to go ahead with the forced sale of Newport Wafer Fab in Wales by Nexperia which is owned by Wingtech of China.
Details of support for investment in the semiconductor manufacturing sector, particularly where they are critical to the UK tech ecosystem or the UK’s national security says the summary.
A specialist incubator pilot will focus on removing obstacles which hold semiconductor startups back from growth. The scheme, launching today, will provide industry with better access to technical resources as well as coaching and networking. THi sis expected to include the involvement of the Silicon Catalyst UK programme.
The government says it will take steps to help sectors mitigate the impact of supply shortages in the future. The UK government also wants to protect critical sectors (essential services, healthcare, critical national infrastructure and defence) from disruptions that could cause risks to life, or national security.
This will include new guidance to companies as well as continued collaboration with the US, Japan, and the Republic of Korea.
“ARM welcomes the UK Government’s new semiconductor strategy, which will support the UK’s effort to play a part in global supply chains for next generation technology. The UK is a significant hub of innovation and talent both for ARM and the wider industry and we look forward to working with the Government and other partners to help make this a reality,” said Rene Haas, CEO of ARM.
The details and the implementation are seen as key.
“The Semiconductor Strategy sets out a long-term roadmap to boosting our chips industry,” said Julian David, CEO of techUK. ”However, delivery will be key, and it is vital the Government moves quickly with the industry and our international partners to turn the strategy into action.
UK wafer fab operator Pragmatic Semiconductor has campaigned strongly for the strategy.
“Support for semiconductor manufacturing is acknowledged in the Strategy as critical to the UK’s technology ecosystem and national security, and we look forward to working with the government to define how this is implemented to support the creation of sustained, long-term value for the UK,” said Scott White, Executive Director and former CEO of Pragmatic.
The full strategy is at www.gov.uk/government/publications/national-semiconductor-strategy
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