UK report urges push on semiconductors

TechUK has recently updated its Plan for Chips report, marking a significant milestone two years after its initial release. The organization is now advocating for more decisive action to be taken in support of the UK semiconductor industry.

The revised report features nine key recommendations, with a primary focus on urging the UK Government to expedite the implementation of its National Semiconductor Strategy. Additionally, TechUK is calling for semiconductors to be officially recognized as critical national infrastructure. This call to action comes at a crucial time, as the US considers imposing 25% tariffs on semiconductor imports and reevaluates funding plans under the US CHIPS Act, while the European Union moves forward with the establishment of pilot lines.

Upon the publication of the National Semiconductor Strategy in 2023, techUK expressed its approval, noting that the strategy incorporated essential recommendations from its own UK Plan for Chips. However, despite the positive steps taken, the progress has been described as 'incremental,' highlighting the need for more substantial and rapid advancements within the sector.

Richard Price, the Chief Technology Officer of Pragmatic Semiconductor, emphasized the importance of government action in response to the report. Price stressed the necessity of supporting fast-growing businesses within the semiconductor industry to unlock the sector's full potential and maintain competitiveness in a global market projected to reach $1 trillion by 2030.

Recognizing the urgency of the situation, TechUK, alongside other trade groups focused on semiconductors, is pushing for immediate and impactful measures to be implemented. Techworks introduced a comprehensive five-point plan at the close of the previous year to bolster the semiconductor sector, while the Semiconductor Advisory Panel, co-chaired by Minister for Science, Research, and Innovation Lord Patrick Vallance and Dr. Jalal Bagherli, is set to provide crucial input for the upcoming spending review.

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Highlighting the critical role of semiconductors in modern technology, Price reiterated the necessity of accelerating the UK's National Semiconductor Strategy. Securing the country's position in this rapidly evolving industry is not only essential for economic growth but also for fostering innovation and enhancing resilience in the face of global challenges.

The TechUK report also advocates for the establishment of a National Semiconductor Centre, as proposed by the Institute for Manufacturing's Semiconductor Infrastructure Initiative Feasibility Study in 2023. This center would work in conjunction with a Design Competence Centre to facilitate collaboration, research, and knowledge transfer among various organizations and disciplines within the semiconductor sector.

• The TechUK plan for chips

Furthermore, the report calls for the creation of an open access foundry with Pilot Lines capability to strengthen research and development in areas where the UK can compete on an international scale. Addressing the current gap in pilot lines is crucial for enabling the testing and validation of designs before moving on to large-scale manufacturing.

According to the report, establishing an open access foundry with pilot lines would not only support small-scale domestic manufacturing but also enable efficient testing of new designs in a cost-effective manner. The focus areas for this initiative include compound semiconductors, nanofabrication, quantum technologies, and silicon photonics.

Price emphasized the significance of semiconductor manufacturing in driving value creation and economic growth. With Europe and the US already making substantial investments in the sector, Price stressed the need for competitive incentives, particularly in areas such as capital investment, to ensure the UK remains competitive on a global scale.