A call to action to rebuild the UK's semiconductor industry | Computer Weekly

"The first step is recognising that the UK is not trying to win the semiconductor race on every front. It can't, and it shouldn't. Instead, the country has embraced a niche strategy, focusing on areas where it can lead the world. Crucially, these are the parts of the value chain that create the most intellectual property and the highest margins. It is a strategy grounded in realism, but also one that demands urgency and coordination."

"Its £1bn National Semiconductor Strategy may be modest compared to the vast subsidies seen in the US and Asia, but its value lies in focus, not volume. Rather than chasing fabs at any cost, the UK is backing areas where it has a realistic chance of worldwide influence. The additional £500m commitment to quantum technology over the next four years shows similar intent."

"Yet strategy alone is not enough. Other countries are already competing fiercely to attract semiconductor investment. Japan secured a major TSMC plant with a mix of subsidies, talent and predictability. Ireland has spent decades cultivating Intel's European operation through a stable regulatory environment and a steady flow of engineers. The UK can learn from these approaches, but it does need to present a value proposition that is just as compelling. It must offer clarity, speed, and a business environment that rewards companies"

Europe's share of the global semiconductor market has fallen sharply over three decades, while the UK has retained specialised, globally relevant capabilities. The UK pursues a niche strategy focused on IP-rich, high-margin segments rather than competing across the full value chain. The government has allocated a £1bn National Semiconductor Strategy and an additional £500m for quantum technology to support areas with realistic global influence. Quantum computing, sensing and communications are priorities with applications across cybersecurity and defence. International competitors such as Japan and Ireland use subsidies, stable regulation and talent pipelines to attract investment. The UK must deliver clarity, speed and a compelling business environment to win investment.

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