The UK government has unveiled its National Semiconductor Strategy. The new investment outlines three key objectives— fostering growth in the domestic chip sector, mitigating the risk of supply chain disruptions, and safeguarding national security. Despite a commitment of £1 billion in investment over the next decade, industry experts have raised concerns about the strategy's effectiveness compared to the substantial funding allocated by the US and EU.
The Semiconductor Strategy reflects the UK government's commitment to strengthening the domestic chip sector, addressing supply chain vulnerabilities, and ensuring national security. Most of the investment will be dedicated to the National Semiconductor Infrastructure Initiative. The strategy focuses on enhancing the talent pipeline and facilitating access to prototyping, tools, and business support for British companies.
Approximately £200 million will be allocated between 2023 and 2025 to bolster industry access to infrastructure, power research and development efforts, and promote international collaboration.
On the other hand, in pursuit of international cooperation, the UK and Japan have established a semiconductor partnership, focusing on strengthening the chip industry in both countries. Japan has pledged significant financial support to companies establishing a presence in the country. As an initial step, UK Research and Innovation will collaborate with the Japan Science and Technology Agency on a joint investment of up to £2 million in early-stage semiconductor research next year.
Although some concerns have been raised, the industry response to the Semiconductor Strategy has been cautiously optimistic. Rene Haas, CEO of Arm, expressed optimism, stating that the strategy would support the UK's role in global supply chains for next-gen tech. Questions have been raised about the impact of spreading the investment over ten years and whether it is sufficient to make a substantial difference.
While welcoming the R&D investment and acknowledging the potential for the UK to lead in flexible semiconductor devices, experts have called for more clarity regarding the allocation of the £1 billion.
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