Government announces independent institute to support semiconductor strategy
semiconductor

Government announces independent institute to support semiconductor strategy

One year after unveiling its £1 billion Semiconductor Strategy, the Department for Science, Innovation and Technology (DSIT) has announced the creation of the UK Semiconductor Institute.

This independent body will serve as a central hub for the industry, fostering collaboration between businesses, universities, and research institutions. It will ensure researchers have the necessary equipment and infrastructure to advance crucial semiconductor research areas. Additionally, the institute will play a key role in translating these innovations into commercially viable products.

The new body will act as a “voice” for the UK’s semiconductor sector, making it easier for international businesses and technology firms to connect and invest.

“Semiconductors underpin all the technology that keeps our economy moving,” said technology minister Saqib Bhatti.

“Our strategy set out that we would grow the sector and make it resilient by focusing on what the British chip sector does best.”

Julian David, CEO of UK tech trade body TechUK, welcomed the institute’s formation, expressing confidence in the institute’s ability to translate strategy into action.

“We are confident that this Institute will serve as an authoritative and empowered body,” he said.

“By bringing together government, universities and the private sector, the Institute will be pivotal in advancing research and development, skills development, and fostering international collaboration. This collaboration will secure a robust and innovative future for the UK’s semiconductor landscape.”

Martin McHugh, CEO of CSA Catapult, a UK organisation promoting collaboration in the semiconductor industry, believes the institute will ensure a “strategic and coordinated approach” to developing new technologies.

The launch of the institute comes amid a global increase in the strategic significance of semiconductors, driven by the rising reliance on technology and the increasing demand for more powerful chips, particularly with the advancement of AI. While Taiwan currently dominates production in the sector, other countries have announced significant investments in the sector to reduce reliance on foreign nations. The shadow of geopolitics looms large over this issue.

Last year, the UK government unveiled a £1 billion Semiconductor Strategy to boost local innovation and establish the UK as a science and technology superpower by 2030.  It aims to achieve three key goals: strengthening the domestic chip industry, ensuring a reliable supply chain, and safeguarding national security.

While industry leaders have welcomed the government’s recent initiatives to boost semiconductor production, some experts are concerned about the level of government investment.

Adrian Toutoungi, an IP lawyer and partner at the law firm Taylor Wessing, told Computing in an interview last month that the £1 billion to be spent over 10 years is “pretty light” compared to other regions’ investments.

Toutoungi also expressed concern about the government delaying expensive decisions.

Last month, the government said it would postpone spending hundreds of millions of pounds on a flagship microchip facility until after the general election. Adrian said “other governments are not putting off their own investment,” warning that “delay can be critical in these fast-moving sectors.”

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