After a two-year wait, the UK has finally released a plan to support the domestic semiconductor sector and increase its competitiveness on a global scale. This new funding strategy will invest up to one billion pounds in the next decade, with an initial two hundred million to be allocated over two years. Nonetheless, the amount falls short in comparisson to similar initiatives enacted in the US and the EU, which have made respective investments of fifty-two and forty-three billion dollars.
Industry players have welcomed the strategy but also criticized it for its limited funds. Amelia Armour, partner at Amadeus Capital Partners, a UK VC firm specializing in semiconductor startups, expressed her disappointment at the level of support given by the government.
On the other hand, the plan does provide guidance into UK-oriented topics such as international cooperation and the growth of areas in the country where it holds a leading role such as R&D, design, compound semiconductors and intellectual property. The funding may also aid the enhancement of the talent pool of the sector as well as enable easier access to what is needed to support the development of British firms, particularly startups and SMEs.
Mark Lippett, CEO of Bristol-based semiconductor company XMOS, highlighted the importance of having “technology that the others want”, a concept at the core of the plan’s ability to secure a seat at the global table.
Amanda Brock, CEO at OpenUK, argued that investment should be accompanied by skills, deep industry knowledge and semiconductor manufacturing sectors in order to ensure the UK’s success.
Ioanna is a writer at TNW specialized in the European tech industry. She has a background in the humanities and a particular interest in startups, sustainability, green tech, AI and EU politics. With a keen eye on social impact-enabling technologies, Ioanna covers the full spectrum of the European tech ecosystem.
OpenUK is a non-profit organisation which represents the country’s open technology sector, including leading chip design company Arm. They are committed to the advancement of technology for the benefit of society, curating expertise in the sector for the support of their growing members.
Amadeus Capital Partners is an international venture capital firm based in the UK. They specialize in seeding and early-stage investments in companies with the potential to drive significant impact in their respective fields. Through their work, they have supported the growth of over 200 innovative firms from across the semiconductor, healthcare and energy sectors and beyond.
