According to Neowin , the new investment has been outlined by the UK government with three main objectives, including promoting growth in the domestic chip sector, mitigating the risk of supply chain disruption, and protecting national security. Despite the commitment to invest £1 billion over the next decade, industry experts have raised concerns about the effectiveness of the strategy compared to the significant funding allocated by the US and EU.
UK government investment is low compared to 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. The bulk of the investment will be dedicated to the National Semiconductor Infrastructure Initiative, which will focus on increasing the talent pool and providing UK companies with access to prototyping, tooling and business support. Around £200 million will be allocated between 2023 and 2025 to boost industry access to infrastructure, energy research and development efforts and international collaboration.
In pursuit of international collaboration, the UK and Japan have also established a semiconductor partnership focused on strengthening the chip industry in both countries. Japan has pledged significant financial support for UK companies to establish a presence in the country. As a first step, the UK Research and Innovation Agency will partner with the Japan Science and Technology Agency on a joint investment of up to £2 million in early-stage semiconductor research next year.
Despite the concerns raised, the UK government’s response to the Semiconductor Strategy has been seen as a cautious move. Arm CEO Rene Hass has expressed optimism that the strategy will support the UK’s role in the global supply chain for next-generation chip technology. Questions have been raised about the impact of spreading the investment over 10 years and whether it will be enough to make a significant difference. However, experts have also called on the UK government to provide more clarity on the allocation plan.
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