The UK’s opportunity to be the foundation of the world’s semiconductor designs
Semiconductors power the billions of technology products we use every day. Significant developments in the past several years have seen policy makers and investors take notice of these fundamental technology building blocks, from the chip shortage of 2020 to the recent interest in advanced computing systems and artificial intelligence (AI). In my role on the UK Government’s Semiconductor Advisory Panel, I know first-hand the importance of growing the UK semiconductor industry, to ensure a steady supply of chips that unleashes technology innovation and grows the wider UK tech sector.
From being founded in Cambridge and building the very first cores for mobile devices, to today’s designs for ever-changing AI workloads, Arm has been at the forefront of the UK semiconductor industry’s evolution and is committed to supporting its growth.
More than half of Arm’s global workforce is spread across Arm’s UK offices in Manchester, Sheffield, Bristol and our global headquarters in Cambridge. These teams are developing some of the most advanced semiconductor designs available, being produced for our partners in the world’s leading-edge semiconductor fabrication plants. Much of that starts here in the UK.
However, the costs associated with this industry are monumental. For example, the most advanced fabrication plants are estimated to cost $28 billion to build. At the same time, the supply chain is complex and globally interdependent. To be competitive and stimulate growth, the UK should play to its strengths in IP and design, right at the start of the supply chain. Below I will set out how the UK can push forward and become the global foundation for the semiconductor industry.
The architects of semiconductors
The UK has an incredible opportunity to build on its foundation as the IP catalyst that powers the semiconductor industry and, in so doing, attract inward investment and stimulate growth. Within two miles of the Arm headquarters in Cambridge are design sites from Microsoft, Samsung, Siemens and many others in the semiconductor supply chain who all benefit from our expertise and the collective talent pool.
The UK is in a strong position for yet more investment, with Arm’s technology ecosystem of over 1,000 partners covering all aspects of the semiconductor supply chain, from semiconductor vendors and foundries to device manufacurers and software vendors.
Building on this growth means the UK can put itself as the architect of the global semiconductor industry, with unprecedented access to major industry players and the tools to support the growth of the tech sector and startups looking to become the next big tech companies of the future.
Efficient AI computing
Looking ahead, AI workloads will only continue to grow and advance, both in terms of compute complexity and sheer numbers. However, this brings rising energy usage and costs that are not sustainable in the long-term, both for the planet and businesses.
Globally, the world’s data centers need 460 terawatt-hours (TWh) of electricity annually, which is the equivalent to the entire country of Germany. Finding ways to reduce the power consumption for these large data centers is paramount, with this requiring significant investments into power efficient AI computing.
If the UK were to provide the investment needed to innovate and experiment with new power efficient chips, then this could build a semiconductor industry that is ready to meet the needs of the ongoing AI revolution. Helping businesses save significant costs through reduced energy usage, while creating a more sustainable future for the planet.
The demand for efficient AI is already there, with world leading technology companies, including Amazon, Google, Microsoft and Oracle, turning to Arm to adopt our power efficient technology for their silicon designs for cloud data centers that do the vast majority of the world’s AI data processing. This demand for efficient AI silicon designs will not be going away anytime soon.
Building semiconductor skills and talent
We also need the UK semiconductor workforce to have the right skills and talent, with this remaining a significant barrier to progress globally. At Arm, we believe in stronger cross-industry and academic collaboration, which is why we announced the Semiconductor Education Alliance in July 2023.
In recognition of the extraordinarily globalized semiconductor industry, this initiative brings together key stakeholders across industry, academia and government from across the world. Leading UK institutions, including UK Electronics Skills Foundation, the University of Southampton, and Anglia Ruskin University are playing a significant role finding and developing a new generation of talent and upskilling the existing workforce.
Investing in initiatives, like the Semiconductor Education Alliance, to create the semiconductor workforce of the future will be vital for the UK to grasp the many opportunities from this growing industry. This will bring together partners from multiple sectors across many different backgrounds that can all offer unique perspectives to address the skills and talent challenge.
Unleashing UK-based semiconductor innovation
The UK has a thriving technology ecosystem. We must continue to champion the UK’s place in the extraordinarily globalized semiconductor industry and work with like-minded nations to ensure resilient supply chains and future innovation in the UK technology industry. Other countries are not sitting idly by, with semiconductor design incentives being implemented by governments worldwide. The UK has a fantastic opportunity to build on its strength as the foundation of the world’s semiconductor designs.
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