U.K. chip firms threaten to move to U.S., EU whilst anticipating govt action

The United Kingdom's semiconductor sector is reportedly appealing to the administration for financial assistance, with sources warning that if action is not taken immediately, the nation stands to lose its microchip businesses to the United States as well as other countries.

PM Rishi Sunak’s government has yet to establish a policy outlining the United Kingdom's efforts to help the semiconductor industry.

Apparently, the nation's chip executives are becoming increasingly irritated.

A Cambridge, England-based business called Pragmatic Semiconductor, which makes non-silicon chips, has warned that if the state does not quickly release a plan for the sector, it might be compelled to transfer abroad.

Britain is an understated participant in the global chip business, which specializes in the design, development, intellectual property, and production of compound semiconductors. It also houses one of the most valuable semiconductor-related enterprises in the shape of chip designer Arm.

Arm-licensed semiconductors, which are based in Cambridge, are deployed in around 95% of smartphones across the world.

Semiconductors, and the primarily East Asian supply chain that supports them, have emerged as a contentious subject for international governments when a global shortfall caused supply issues for significant carmakers and electronics producers.

The Covid-19 pandemic revealed an overdependence on producers of semiconductor chips from Taiwan and China. With rising tensions between Taiwan and China, this reliance has become risky.

TSMC, a Taiwanese semiconductor powerhouse, is by far the largest manufacturer of microchips. Its chipmaking expertise is envied by several industrialized Western nations, which are pursuing steps to increase local manufacturing of semiconductors.

In the United States, President Joe Biden enacted the CHIPS and Science Act, a $280 billion bill that comprises $52 billion in financing to encourage domestic chip production.

In addition, the EU has set up 43 billion euros ($45.9 billion) for the continent's semiconductor sector with the goal of having 20% of the world's chips produced by 2030.

Source credit: https://www.cnbc.com/2023/02/13/uk-semiconductor-strategy-chip-firms-threaten-to-move-overseas.html