In an effort to lessen reliance on Asian production of the computer chips that are crucial to contemporary living, the British government published its long-awaited semiconductor plan on Friday, catching up with previous initiatives by Western partners.
According to the U.K. proposal, the government will invest up to 1 billion pounds ($1.2 billion) in the nation’s semiconductor industry over the next ten years. The U.S. Chips Act, which offers $52 billion in government incentives, and the European Union’s $43 billion euro ($46 billion) chip initiative are far more generous than this sum.
The funding from the British government will be utilized mostly on compound semiconductor technology advancements, design, and intellectual property. Between 2023 and 2025, the first 200 million pounds will be made available.
Rishi Sunak, the prime minister, stated, “Our new strategy focuses our efforts on where our strengths lie, in areas like research and design, so we can build our competitive edge on the global stage.”
The plan aims to strengthen the domestic chip market, reduce supply chain disruption, and safeguard British national security.
Everything from automobiles and cellphones to washing machines and medical equipment is controlled by semiconductors, which are tiny computer chips. The majority of the world’s cutting-edge chips are made in Asia, particularly in Taiwan and South Korea. This region’s vulnerability was highlighted during the coronavirus epidemic when supply chains were disrupted and prolonged shortages of manufactured goods resulted.
Sunak and Japanese Prime Minister Fumio Kishida announced semiconductor collaboration on Thursday to strengthen the supply chain for the components while Sunak is in Japan for the Group of Seven major economies conference.
