Industry views
14 May 2024
by David Moore

Accelerating UK ambition on semiconductors for people and planet

Guest blog from David Moore at Pragmatic for our #UnleashInnovation campaign 2024.

The impacts of climate change are growing more pressing by the day. The World Economic Forum estimates that a 55 per cent reduction in emissions is required by 2030 to stay on track with the Paris climate agreement goals. Yet commitments for 2030 are projected to reduce emissions by just 7.5 per cent.

Technology has long been acknowledged as a critical enabler for accelerated climate action. Digital transformation is already impacting every facet of business and of our everyday lives, reducing energy consumption and unlocking efficiencies everywhere from smart grids to smart factories.

While these smart solutions have the ability to drive down emissions, helping us on our trajectory to Net Zero, they also have their own digital footprint. To ensure a net benefit, reducing the environmental impact of the underlying technology is critical.

Reducing emissions at scale

Semiconductors – traditionally, silicon chips – are the lifeblood of digital transformation, spanning cloud, edge and device-level computing. Some of their most impactful applications harness item-level intelligence, using AI models to parse the data from billions of connected devices and drive efficiency at scale.

So how do we maximise progress while minimising carbon impact? As data-gathering devices become ubiquitous, we need new technologies to deliver more sustainable intelligence.

FlexICs – flexible integrated circuits – deliver item-level intelligence with a significantly smaller carbon footprint than silicon. Low cost and thinner than a human hair, they’re physically flexible – so they’re easily integrated into everyday objects. They’re also quick to produce and are highly customisable, to suit a multitude of existing applications – and many new ones that simply wouldn’t be possible with silicon chips.

Crucially, they’re produced using an innovative, simplified manufacturing process that uses significantly less energy and less water than silicon semiconductor manufacturing, and fewer harmful gases. This gives them a carbon footprint that’s orders of magnitude less, making them more suited to deployment at scale in applications such as smart reusable packaging for consumer goods; smart patches for preventative healthcare; or item-level tracking for the industrial sector. It also contributes to the reduction of emissions across the value chain.

Semiconductors typically rely on a geographically dispersed supply chain, with each chip travelling thousands of miles between fabrication, packaging, testing and assembly. Pragmatic’s condensed process allows end-to-end production at a single site, in a footprint of just 600m2. This ‘Fab-in-a-Box’ can be situated almost anywhere, allowing for fully localised production and security of supply.  

Scaling semiconductor sustainability

To scale FlexICs to have a meaningful impact on climate goals, there needs to be increased support for the UK semiconductor sector.

Pragmatic is proud to operate a global business from a UK base, split between our head office in Cambridge, and our manufacturing facilities in County Durham. Between these two sites, we anticipate the creation of over 500 highly skilled jobs in the next five years.  

Our expertise and innovation mean we’re well placed to lead the world in the manufacture of alternative semiconductor technologies. However, like many UK semiconductor companies, we need support from the Government in three key areas:

  • Bold policymaking to support the sector
  1. Policymakers must be prepared to offer tangible support for domestic semiconductor manufacturing – but the UK government does not need to match the funding levels offered by the US and EU ‘CHIPS’ Acts.
  2. While tens of billions are required to support the deployment of advanced silicon fabs, Pragmatic’s fabs – with their simplified production processes – cost just a fraction of that amount. This means that the amount of funding offered by the National Semiconductor Strategy can make a material difference in increasing supply chain resilience, supporting national security and growing the sector in the UK – but we need a clear plan for how this support can be delivered.
  3. We continue to engage closely with policy makers to share our ideas and the strong case for investment, and the Government appreciates the scale of the opportunity. There is opportunity for more certainty and the conviction to take the right path for the UK.
  • Investment in cutting edge technology businesses
  1. We’re proud that our Series D funding round was co-led by the government-backed UK Infrastructure Bank, and we hope we have forged a path for others to follow. By driving domestic investment in UK-based, late-stage technology companies, the Government can help to retain British ownership, grow domestic operational footprint and innovation, and prevent talent loss overseas.
  2. Continued reform of pension regulations is also important, to increase the funds available to British venture capital for investment in technology businesses. Mechanisms such as matching private sector funding with direct government investment would also enhance significant late-stage venture funding rounds, and maximise British value capture from the most exciting technology scale-ups.
  3. Alternative funding models that suit the needs of technology manufacturing businesses could avoid them using equity to fund capital expenditure, such as government-backed loans or loan guarantees for high-growth companies that are investing significant capital but are not yet profitable.
  • Supporting homegrown markets for advanced technology
  1. The Government is one of the largest customers in the UK; they can foster the growth of domestic technologies by supporting them through innovative and strategic procurement – embedding new tech across the public sector to increase efficiency and reduce costs.

This is something that’s already in progress, through investment in AI solutions at scale in support of circular economy initiatives and a more efficient, accessible healthcare system, for example.

With strong support for innovation, the UK can leverage technology to drive forward its Net Zero ambitions. With bold investment, and strong political will, we can grasp the opportunities of the future, while meeting the challenges of today – and help make the world a better place, for everyone.

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The UK is home to emerging technologies that have the power to revolutionise entire industries. From quantum to semiconductors; from gaming to the New Space Economy, they all have the unique opportunity to help prepare for what comes next.

techUK members lead the development of these technologies. Together we are working with Government and other stakeholders to address tech innovation priorities and build an innovation ecosystem that will benefit people, society, economy and the planet - and unleash the UK as a global leader in tech and innovation.

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Related topics

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Authors

David Moore

David Moore

CEO, Pragmatic

David Moore is CEO of Pragmatic Semiconductor. He has over 25 years semiconductor leadership experience. Most recently, he was Chief Strategy Officer at Micron Technology Inc where he had group-wide accountability for a range of corporate functions. Prior to Micron, he spent 6 years at Intel in a number of executive leadership roles, including General Manager Programmable Solutions Group, leading the multi-billion-dollar FPGA and Structured ASIC business.

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