New Semiconductor Institute welcomed by UK chip sector as part of £1bn strategy

Britain’s microchip industry has welcomed the creation of a UK Semiconductor Institute, which aims to support the government’s £1bn strategy to grow the sector.

Tasked with promoting the sector to investors and attracting foreign investment in British research, the new independent institute will advocate for the voice of the industry.

It is one year since the UK government published its semiconductor strategy. It was initially met with scepticism from some industry quarters, which cited concerns that the £1bn allocation would be insufficient to help Britain compete with heavyweights like the US and Germany.

However, this latest announcement appears to have garnered greater approval from the UK’s chip sector.

David Moore, chief executive of British chip company Pragmatic, said: “As a UK-based semiconductor company, servicing a global customer base, we welcome efforts to provide access to technology to foster the growth of emerging businesses, drive the expansion of the sector talent pool and promote international partnerships.

“The institute represents a significant opportunity for building out new infrastructure in support of areas where the UK can lead on the global stage, including advanced materials and disruptive, new approaches to semiconductor manufacturing at scale,” he added.

Over the past year, the government has also established the Semiconductor Advisory Panel, joined the EU’s Chips Joint Undertaking scheme and broadened the mandate for the UK Infrastructure Bank (UKIB) to include semiconductors.

Jalal Bagherli, co-chair of the Semiconductor Advisory Panel hailed the creation of the Semiconductor Institute as “a very positive step in advancing the UK semiconductor strategy.

“It is seen as an effective way to create long term momentum for our industry, help in engaging international partners and attracting investment in the sector,” Bagherli added.

Janet Collyer, senior independent director at chip designer Ensilica, said: “I am delighted to support the independent UK Semiconductor Institute. It will provide a welcome UK focal point of support for semiconductor companies at all stages of their growth. 

“This capability is particularly important in the key areas of attracting diverse talent to the sector, accelerating production revenue by shortening the transition from lab innovation to production volume manufacture – ‘the Lab to Fab’ – and securing ongoing investment on schedule for timely national expansion during the scale-up phase.”

While many have acknowledged that Britain is unlikely to ever rival silicon manufacturing giants like Taiwan, the semiconductor industry says the nation’s strengths lie in innovative materials, design and research and development.