The UK government has announced plans to invest £1 billion in the semiconductor industry over the next decade, with £200 million of this amount being invested in the next two years.

The investment will be used to facilitate design, research and collaboration in semiconductor manufacturing. The government also wants to improve the resilience of the semiconductor supply chain.

The government predicted the global semiconductor will grow to $1 trillion by 2030. Semiconductors have a wide range of uses and will underpin future technologies such as 6G, quantum and AI.

A new UK semiconductor advisory panel will bring together key people from industry, government and academia to put the strategy in place. Some of the investment will be used for training, so that people can gain the skills need to work in the industry.

An incubator pilot scheme will work with startups on removing barriers which help them to grow. The government said this scheme will provide better access to technical resources as well as coaching and networking.

“Semiconductors are the beating heart of all electronic devices, from powering our phones and cars to medical equipment and innovative new technologies like quantum and AI which will make a real difference to all of our lives,” said Chloe Smith, science innovation and technology secretary.

“Britain is already a world leader when it comes to researching and designing semiconductor technology – our new strategy will double down on these core strengths to create more skilled jobs, grow our economy, boost our national security and cement the UK’s status as a global science and technology superpower,” Smith added.

Critics of the delayed package of support for the industry have however accused the UK government of not going far enough. The chair of the House of Commons Business Select Committee, Labour MP Darren Jones, said that "the initial £250m is a very small amount of subsidy compared to other countries".

Labour also pointed out that the £1bn figure was less than the cost of one basic semiconductor plant, shadow culture secretary Lucy Powell stating: “Rather than the £1 billion headline, the reality is £200 million over the next three years – significantly less ambition than our competitors.”

A consultant for Gartner said that while the funding would be fine for research, the funding is "insignificant" if the UK wants to compete with major players in the industry like Nvidia and Broadcom.

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