Incremental progress: The National Semiconductor Strategy needs to be bolder
National Strategy turns one
Next week marks one year since the UK Government announced its plan to secure the UK’s leadership in the global semiconductor industry.
In May 2023, DSIT outlined their 20-year path to UK leadership, dedicating up to £1bn in targeted support across IP and Design, R&D, and Compound Semiconductors. This one billion figure, on the face of it, was dwarfed by the commitments of the US, EU, China and South Korea. However, the UK's goal differed from these strategies. Instead, it would seek to deliver on a selected unique selling points.
Within these limited paradigms, the UK National Semiconductor Strategy committed to developing a robust domestic sector, strong National Security, and a resilient supply chain, guided with a Semiconductor Advisory Panel from industry. This approach was welcomed and was the first sign of a government plan for the industry in decades.
But as the National Strategy turns one, can we look back and say that it has positively put the Semiconductor industry on the right path? In short- sort of.
Why did the UK’s strategy differ from other nations?
Semiconductor technology is more concentrated within certain companies, and internationally dependent than almost any other industry. For example, Dutch-based ASML produces 100% of the world’s Extreme Ultraviolet lithography machines, a core process in producing integrated circuits. TSMC produces around 90% of the world’s most advanced chips. Breaking free of this international supply chain with a fully self-contained Semiconductor industry within UK borders is not realistic, so a doubling down on British USP’s is reasonable. As we put it at the time, “a good start”.
What progress has been made?
In January 2023, techUK posted our five-point, UK plan for Chips. This was written alongside members who design and manufacture semiconductors, consumer electronics companies and innovators in emerging technologies such as AI and Quantum. A number of these recommendations were fully or partially addressed. Partial movement can be seen in skills, with the recent investment into 65 Doctoral Training centres, or a £22m R&D boost with Knowledge and Innovation Centre funding.
However, working within the financial constraints of the Strategy, the UK industry will need more than light touches. Putting the rhetoric of the strategy into action requires an ambitious, well-co-ordinated delivery.
Whilst techUK welcomed the investment into Knowledge and Research centres, a strategic approach to developing a skills pipeline is still needed to address the growing disparity in demand. For example, we’re yet to see a gap analysis of the sector to understand which areas would yield the highest return on investment. In the short term, an immigration system that compliments UK skills by outlining shortage occupation list’s, and student talent matching partnerships would provide a fantastic boost to new design and manufacturing techniques. Furthermore, confusion regarding R&D tax credits, which were a fantastic way for SME’s to invest in innovation. R&D tax incentives could be better leveraged to support the R&D landscape, especially through supporting CapEx funding more effectively
The UK’s Semiconductor future
The UK’s ambition is set- to become a science and tech superpower by 2023. This will require addressing a series of multilayered challenges that have held back British innovation, like keeping global pace with R&D investment to increasing commercialisation of UK tech. The Semiconductor industry has not been immune to these challenges, and as one of DSIT’s core five technologies of tomorrow, will be a key part of the puzzle to achieving this superpower status. Electric vehicles require twice the chips as traditional cars, AI requires incredibly high compute power, efficient and widespread green energy requires innovative harnessing and storage. In other words; the UK cannot be a science and tech superpower, unless it is a Semiconductor leader.
To be a semiconductor leader, we need to see more areas of our Plan for Chips actioned. From supporting the skills that will underpin the sector's growth, to increased financial support in areas of R&D, IP and Design. There needs to be incentive to grow in the UK, especially considering the incredible concentration of this technology within a few key regions and companies. There was a reason that our Plan for Chips listed “retaining global leadership” as its first goal. In a global race to generate semiconductor skills, funding and research, the Government must ramp up support to enable the UK industry to meet the immense demands future tech needs.
Next steps, and how you can help
The UK semiconductor industry was not catching lightning in a bottle, but a well earnt place of leadership through intelligent collaboration between academia, researchers and industry. Japan was once considered a powerhouse in consumer electronics, but has since lost ground to American, Korea and Chinese competitors. The UK’s current, similarly, position shouldn't be taken for granted. Leadership requires bold decisions, and there are many ways in which we are still yet to see this. The good news is, our Plan for Chips has already done the hard work, and outlined precisely what actions policymakers need to take.
The UK is comfortably the biggest tech hub in Europe, but our leadership this century goes nowhere without Semiconductors as the bedrock. The National Strategy was a positive step in the right direction, and there has been undeniable good work in supporting the sector, but global leadership won’t be won by light touches. Decisive and unwavering commitment to the sector is needed, with a long -term strategy which goes beyond a single government. That’s why we were proud to form the Chips Coalition, a group we formed in June 2023 with Global Tech Advocates and Techworks as the industry voice to government. This industry group meets quarterly, under the united goal of providing a strong industry voice to a thriving semiconductors industry in the UK. From informing our future work, to joining exclusive briefings, the Chips Coalition is a one-stop shop for Industry and Government to set the agenda for the Semiconductor sector.
We look forward to working with key stakeholders to continue our advocacy for Semiconductor technology, and translating the National Strategy's rhetoric to action.
To join the Chips Coalition group, click here.
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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.
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Sprint Campaigns
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.
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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, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
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- [email protected]
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- 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).
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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, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- 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.
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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, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- 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.
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Tech and Innovation Summit 2023
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Laura Foster
Laura Foster
Laura is techUK’s Head of Programme 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.
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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.
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- [email protected]
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- www.techuk.org/
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- 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, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Authors
Elis Thomas
Elis joined techUK in December 2023 as a Programme Manager for Tech and Innovation, focusing on AI, Semiconductors and Digital ID.
