Semiconductors: How do we build an internationally competitive semiconductor industry in the UK?
While the UK boasts world-leading capabilities in multiple tech verticals, our role in the semiconductor industry of today is less certain.
In an industry impacted by geopolitical uncertainty more than most, it is particularly important that the UK finds a strategic ‘point of entry’ into the supply chain.
And while matching the multi-billion dollar investment into manufacturing seen in the US may seem unrealistic, it is clear that the £1 billion announced in the Government’s semiconductor strategy must be allocated strategically and focus on capitalising on the capabilities the UK does possess.
To this end, it is vital for the UK to look abroad for opportunities to collaborate - both with our immediate neighbours and those further afield - to enhance our position in the sector.
There are few industries with a supply chain as diverse as semiconductors; any attempts to gain strategic advantage must recognise this and focus on finding a place in this complex network.
R&D: The UK’s bread and butter
UK capabilities in research and development have long been a bright spot in our semiconductor industry, with ARM’s growth in the UK being emblematic of an established track record in research capabilities.
The manufacturing of semiconductors is the stage in the supply chain that often garners the most media attention - but it is tricky to see the UK competing with the infrastructural facilities of the US, China and Taiwan. With 60% of the world’s chips developed in Taiwan alone, and factories costing tens of billions of dollars to build, it is hard to see how the UK would benefit from pursuing similar capabilities.
Instead, the focus must be on the UK’s strengths. In R&D, the UK has a strong position - and it’s a pretty important one, too. There are few other industries where technological advantage can outweigh the importance of mass production quite like this one.
Those looking for an example need only look across the channel in the Netherlands; their cutting-edge EUV (Extreme Ultraviolet) lithography capabilities developed by ASML have ensured they have become an indispensable part of the semiconductor supply chain for silicon chips.
There is no reason why the UK can’t nurture similar levels of innovation and build strong positions in relatively new areas like compound semiconductors.
Fuelled by a higher education ecosystem that continues to be the envy of the world, R&D is a clear area in which the UK can excel.
It is no coincidence that ARM’s headquarters are located in Cambridge, one of the world’s most renowned educational hubs. Universities in the UK are the backbone of our scientific and technological capabilities - they must be afforded the funds and support necessary to nurture the talent that they continue to produce. For semiconductors, more support at the PhD level is needed along with ensuring better access for overseas talent to come and study and work in the sector alongside British talent.
Looking abroad: Time to collaborate
Last month’s announcement by DSIT to join the EU-funded Chips Joint Undertaking scheme demonstrated a renewed spirit of collaboration that will have buoyed many at home. The scheme builds on positive progress made last year in the UK “semiconductors partnership” with Japan.
This will come as a major vote of confidence in many British startups, with a pot of €1.3 billion up for grabs for leading companies in semiconductor research.
A key part of driving technological progress is co-operation and collaboration. That is no different for semiconductors and this must form a crucial part of the Government’s strategy in enabling growth in these all-important areas.
When the world’s best are able to collaborate, everyone wins.
This is not simply about benefiting from talent and investment coming from abroad, but about leaving our footprint on innovation happening elsewhere.
Without the financial clout of international rivals, pooled resources - as demonstrated by the Chips Joint Undertaking scheme - can enable the UK to match, and ultimately compete, on a far more level playing field.
Building an internationally competitive semiconductor industry, coordinated by a new Institute
To compete in the international semiconductor industry, it is vital that the UK focuses on what it already specialises in.
At home, R&D stands out as an important segment where the UK can lead. Our talent pool is a fantastic asset, and our educational institutions more than up to the task of creating the next generation of semiconductor enthusiasts.
The UK can also thrive on the international stage. Through adopting key partnerships with strategic allies, our expertise can be enhanced at home, and in turn help others across the world. Emerging segments in chips such as compound semiconductors, where South Wales has established a world-leading position, along with ‘advanced packaging’ of chips, which is still in early stages of development and growth are two opportunities for the UK to become a significant international player.
Discussions are underway, as part of the UK Semiconductor Strategy, to set up a ‘National Semiconductor Institute’ to coordinate and help resource a variety of initiatives to support some of the points I have outlined here; in its last meeting, leaders from the UK Chips Coalition (a private sector group of leaders from the private sector supported by techUK, Global Tech Advocates and Techworks) and others are working with Government to understand what a new institute may look like to assist the sector and ensure that chips continue to underpin the UK’s world-leading position in tech.
Playing to the UK’s strengths and expertise along with close collaboration between the public and private sectors will help build a strategically significant role in this vital technology.
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techUK – Unleashing UK Tech and Innovation
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.
For more information, or to get in touch, please visit our Innovation Hub and click ‘contact us’.
Tech and Innovation Summit, 6 Nov (rescheduled date)
Emerging technologies will be debated and explored at our annual Tech and Innovation Summit, taking place on 6 November. This campaign week will directly feed into the themes discussed at the Summit.
techUK’s flagship Tech and Innovation Summit returns to traverse the extraordinary and ground-breaking discoveries made possible by the application of emerging and transformative technologies.
Upcoming events:
Gaming & Esports Technologies of the Future
National Videogame Museum, Sheffield Panel discussion
A Black Lens: Exploring Representation In The Future of Extended Reality (XR)
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Learn more about our Unleashing Innovation campaign:
Sprint Campaigns
techUK's sprint campaigns explore how emerging and transformative technologies are developed, applied and commercialised across the UK's innovation ecosystem.
Activity includes workshops, roundtables, panel discussions, networking sessions, Summits, and flagship reports (setting out recommendations for Government and industry).
Each campaign runs for 4-6 months and features regular collaborations with programmes across techUK.
This campaign explored how the UK can lead on the development, application and commercialisation of space technologies and ultimately realise the benefits of the New Space Economy.
These technologies include AI, quantum, lasers, robotics & automation, advanced propulsion and materials, and semiconductors.
Activity has taken the form of roundtables, panel discussions, networking sessions, Summits, thought leadership pieces, policy recommendations, and a report.
Get in touch below to find out more about techUK's ongoing work in this area.
Event round-ups
Report
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
This campaign has explored how the UK can lead on the development, application and commercialisation of the technologies set to underpin the Gaming & Esports sector of the future.
These include AI, augmented / virtual / mixed / extended reality, haptics, cloud & edge computing, semiconductors, and advanced connectivity (5/6G).
Activity has taken the form of roundtables, panel discussions, networking sessions, Summits, and thought leadership pieces. A report featuring member case studies and policy recommendations is currently being produced (to be launched in September 2024).
Get in touch below to find out more about contributing to or collaborating on this campaign.
Upcoming events
Gaming & Esports Technologies of the Future
National Videogame Museum, Sheffield Panel discussionEvent round-ups
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from July to December 2024, this campaign will explore how the UK can lead on the development, application and commercialisation of web3 and immersive technologies.
These include blockchain, smart contracts, digital assets, augmented / virtual / mixed / extended reality, spatial computing, haptics and holograms.
Activity will take the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and reports.
Get in touch below to find out more about contributing to or collaborating on this campaign.
Upcoming events
Event round-ups
Guest insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Campaign Weeks
Our annual Campaign Weeks enable techUK members to explore how the UK can lead on the development and application of emerging and transformative technologies.
Members do this by contributing blogs or vlogs, speaking at events, and highlighting examples of best practice within the UK's tech sector.
Summits
Tech and Innovation Summit 2023
Tech and Innovation Summit 2024
Laura Foster
Laura Foster
Laura is techUK’s Associate Director for Technology and Innovation.
She supports the application and expansion of emerging technologies, including Quantum Computing, High-Performance Computing, AR/VR/XR and Edge technologies, across the UK. As part of this, she works alongside techUK members and UK Government to champion long-term and sustainable innovation policy that will ensure the UK is a pioneer in science and technology
Before joining techUK, Laura worked internationally as a conference researcher and producer covering enterprise adoption of emerging technologies. This included being part of the strategic team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University, focussing on regional social history. Outside of work she loves reading, travelling and supporting rugby team St. Helens, where she is from.
- Email:
- [email protected]
- LinkedIn:
- www.linkedin.com/in/lauraalicefoster
Elis Thomas
Elis Thomas
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on AI, Semiconductors and Digital ID.
He previously worked at an advocacy group for tech startups, with a regional focus on Wales. This involved policy research on innovation, skills and access to finance.
Elis has a Degree in History, and a Masters in Politics and International Relations from the University of Winchester, with a focus on the digitalisation and gamification of armed conflicts.
- Email:
- [email protected]
- Website:
- www.techuk.org/
- LinkedIn:
- https://www.linkedin.com/in/elis-thomas-49a1aa1a1/
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.
This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Authors
Russ Shaw CBE
Russ Shaw CBE is the founder of Tech London Advocates and Global Tech Advocates. He originally founded Tech London Advocates in 2013 to ensure an independent voice of the technology community was heard, but with a focus on the private sector.Since then he has been championing London as a global tech hub and campaigning to address some of the biggest challenges facing tech companies in the UK.Global Tech Advocates, founded in 2015, is now present in 31 hubs around the globe, with over 30,000 members.
