The Semiconductor Industry in the UK

Business and Trade Committee Closed Inquiry
Opened: 25 May 2022 Closed: 26 May 2023 Parliament page
This inquiry will examine the strengths and weaknesses of the semiconductor industry and its supply chain in the UK. Semiconductor materials are essential in electronics and are used in computer chips in everything from fridge freezers to airliners. The new inquiry comes amidst an ongoing global shortage of semiconductors that … Read more
11 Recommendations
5 Conclusions
2 Reports
2 Oral sessions
3 Letters
2 Events
Activity timeline 10 events
25 May
2023
Report published
3 Feb
2023
Report published
28 Nov
2022
Report published
6 Sep
2022
Correspondence
6 Sep
2022
Correspondence
6 Sep
2022
Correspondence
5 Jul
2022
Oral evidence
5 Jul
2022
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
7 Jun
2022
Oral evidence
7 Jun
2022
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
Oral evidence sessions 2 sessions
5 Jul 2022
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Americo Lemos · IQE plc Dr Andrew Rickman · Rockley Photonics Paul Williamson · Arm Professor Ken Young · MTC (Manufacturing Technology Centre) Rina Pal-Goetzen · Semiconductor Industry Association Simon Beresford-Wylie · Imagination Technologies Simon Thomas · Paragraf Toni Versluijs · Nexperia UK Trish Blomfield · Intel
7 Jun 2022
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Alan Banks · TechWorks Alistair McGibbon · Compound Semiconductor Application Catapult Dr Andy Sellars · Compound Semiconductor Application Catapult Jillian Hughes · NMI (National Microelectronics Institute) John Docherty · TechWorks Martin McHugh · Compound Semiconductor Application Catapult
Recommendations & Conclusions
16 results
1 Recommendation Acknowledged
Fifth Report - The semiconductor i…
The UK is an important part of global semiconductor supply chains, but it is reliant...
The UK is an important part of global semiconductor supply chains, but it is reliant upon other countries. The UK alone will not have an end-to-end supply chain for semiconductors, but it has tradeable strengths. The Government should work more … Read more
Government Response
The government recognises the need to work closely with international partners to guarantee security of chip supply, and is considering opportunities to cooperate directly and through multilateral fora.
Department for Business and Trade
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2 Recommendation Acknowledged
Fifth Report - The semiconductor i…
We ask Ministers to consider whether the above recommendation, on closer working between the UK...
We ask Ministers to consider whether the above recommendation, on closer working between the UK and allies in the EU and US, can be effectively delivered by requesting that the UK be invited to take part in relevant parts of … Read more
Government Response
The government states that it will pursue plurilateral co-operation with like-minded nations and strengthen bilateral relationships to improve semiconductor supply resilience.
Department for Business and Trade
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3 Conclusion Acknowledged
Fifth Report - The semiconductor i…
The exercise of controls under the National Security and Investment Act is still at an...
The exercise of controls under the National Security and Investment Act is still at an early stage. We note reservations about the speed of some assessments under the Act and under the export control process, and we will be conducting … Read more
Government Response
The Government acknowledges the importance of protecting the UK from national security risks arising from the semiconductor industry and will continue to work to make sure that the use of export and investment controls is clear and easy to understand for businesses.
Department for Business and Trade
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4 Conclusion Deferred
Fifth Report - The semiconductor i…
We will further consider the Nexperia case, via the National Security and Investment Sub-Committee, once...
We will further consider the Nexperia case, via the National Security and Investment Sub-Committee, once the period for appeal has expired. In the meantime, the Department should work proactively to ensure a successful transfer of the Newport site to a … Read more
Government Response
The government cannot provide an update on the Nexperia case until judicial review proceedings have been completed.
Department for Business and Trade
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5 Recommendation Acknowledged
Fifth Report - The semiconductor i…
Semiconductors play a hidden but highly significant role in many parts of the UK’s critical...
Semiconductors play a hidden but highly significant role in many parts of the UK’s critical national infrastructure. We request that the Government sets out which elements of the semiconductor supply chain constitute critical national infrastructure. (Paragraph 70) Role of Government Read more
Government Response
The Government recognises the significant role of semiconductors in critical national infrastructure and that ensuring security of supply is a priority; they are already considering risk across critical sectors and the National Semiconductor Strategy sets out plans to assess and action emergent supply chain threats.
Department for Business and Trade
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6 Conclusion Deferred
Fifth Report - The semiconductor i…
We recognise that many Government departments have an interest in the semiconductor industry, and that...
We recognise that many Government departments have an interest in the semiconductor industry, and that these interests may overlap. But, in our view, the value of semiconductors to so many sectors of the UK economy and to UK national infrastructure, … Read more
Government Response
The government states that the Department for Science, Innovation and Technology will drive innovation and work closely across government, including with the Department for Business and Trade, to ensure coherence in industrial strategy, research, and international cooperation, rather than BEIS taking sole responsibility.
Department for Business and Trade
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7 Conclusion Accepted
Fifth Report - The semiconductor i…
While it is for those in the semiconductor industry to decide how to champion its...
While it is for those in the semiconductor industry to decide how to champion its causes, we believe that there is scope for the sector to play its part in improving the clarity of communication between the industry and Government, … Read more
Government Response
The Government agrees that the UK’s approach to the global semiconductor sector must be industry-led and will launch a UK Semiconductor Advisory Panel to combine industry, government and academia to drive progress toward our vision for the sector.
Department for Business and Trade
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8 Recommendation Accepted
Fifth Report - The semiconductor i…
The Government was correct in its decision to instigate a review of its approach to...
The Government was correct in its decision to instigate a review of its approach to the semiconductor sector and in heralding a new strategy. The industry has waited for the strategy and will base crucial decisions upon it. The Government … Read more
Government Response
The Government has published a clear, long-term National Semiconductor Strategy, which will secure areas of world leading strength in the technologies of the future, by focusing on its strengths in R&D, IP and design and compound semiconductors.
Department for Business and Trade
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9 Recommendation Accepted in Part
Fifth Report - The semiconductor i…
We recommend that the forthcoming Semiconductor Strategy should include: • An analysis of the semiconductor...
We recommend that the forthcoming Semiconductor Strategy should include: • An analysis of the semiconductor production and supply chain, recognising different characteristics for different subsectors of the industry, and areas of strength and weakness; • A heatmap, showing where different … Read more
Government Response
The government will publish semiconductor resilience guidance, undertake crisis and contingency planning exercises, work with external suppliers, and evaluate the UK’s future domestic semiconductor manufacturing needs as part of a commissioned research project, falling short of the comprehensive analysis and heatmap requested.
Department for Business and Trade
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10 Recommendation Accepted in Part
Fifth Report - The semiconductor i…
We recommend that the Government’s Semiconductor Strategy consider scope for development of the UK semiconductor...
We recommend that the Government’s Semiconductor Strategy consider scope for development of the UK semiconductor industry in the following fields: • Intellectual property and design; • Supporting the design chain for leading edge node chips; • Matching UK manufacturing capability … Read more
Government Response
The government aims to double down on areas of UK expertise, maintain its lead in chip design and IP, and build a foothold in future semiconductor technologies, but does not commit to all the fields suggested in the recommendation, specifically regarding development of manufacturing processes for silicon semiconductors and facilitating the construction of new fabs.
Department for Business and Trade
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11 Conclusion Accepted
Fifth Report - The semiconductor i…
It is not clear to us that the support currently offered by Government is at...
It is not clear to us that the support currently offered by Government is at anything like the scale which is needed to make a real difference, or in line with a clear strategy from Ministers.
Government Response
The government committed to investing up to £200 million into the sector over the next 2 years, and up to £1 billion over the next 10 years, alongside international R&D collaboration, domestic R&D, the creation of a ‘UK semiconductor infrastructure initiative’, and new centres for doctoral training.
Department for Business and Trade
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12 Recommendation Accepted in Part
Fifth Report - The semiconductor i…
The Government must not overlook the semiconductor industry.
The Government must not overlook the semiconductor industry. Whilst we recognise the difficult fiscal picture in the UK, we call on Ministers to set up a new sector deal as the vehicle to work with industry to agree UK priorities … Read more
Government Response
The government is reviewing its approach to supporting the growth of technology companies, including in the semiconductors sector, and will build on existing R&D spending through a commitment to up to £200 million in funding for research and development across the current spending review period. The Government intends to announce plans by the autumn to further support the competitiveness of the semiconductor manufacturing sector.
Department for Business and Trade
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13 Recommendation Accepted
Fifth Report - The semiconductor i…
The UK is missing out on inward investment at a crucial time for the semiconductor...
The UK is missing out on inward investment at a crucial time for the semiconductor industry, and we are competing with other countries. The Government should secure partnerships via the US CHIPS Act, and engage with Taiwanese and other major … Read more
Government Response
The government states that DBT is already supporting businesses in attracting investment and entering new markets, including expanding the High Potential Opportunities tech programme and the Digital Trade Network in Taiwan; international partnerships are at the heart of their approach.
Department for Business and Trade
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14 Recommendation Accepted
Fifth Report - The semiconductor i…
We welcome the steps being taken by the Government to encourage talent from overseas, although...
We welcome the steps being taken by the Government to encourage talent from overseas, although it has yet to be seen whether they will help to solve the challenges faced by the semiconductor industry in recruiting and retaining workers with … Read more
Government Response
The government recognizes the importance of skills across our semiconductor sector, and will train more highly skilled engineers, through expanding our support for Centres for Doctoral Training (CDTs) in semiconductor related fields, supporting schools and higher education, together with industry to provide more industry placements, and welcoming international talent.
Department for Business and Trade
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9 Recommendation
Sixth Report - The semiconductor i…
We recommend that the forthcoming Semiconductor Strategy should include: • An analysis of the semiconductor...
We recommend that the forthcoming Semiconductor Strategy should include: • An analysis of the semiconductor production and supply chain, recognising different characteristics for different subsectors of the industry, and areas of strength and weakness; • A heatmap, showing where different … Read more
Department for Business and Trade
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10 Recommendation
Sixth Report - The semiconductor i…
We recommend that Government’s Semiconductor Strategy consider scope for development of the UK semiconductor industry...
We recommend that Government’s Semiconductor Strategy consider scope for development of the UK semiconductor industry in the following fields: • Intellectual property and design; • Supporting the design chain for leading edge node chips; • Matching UK manufacturing capability to … Read more
Department for Business and Trade
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Government Response AI assessment · 14 of 11 classified
Accepted 5
Accepted in Part 3
Acknowledged 4
Deferred 2
Total 11 recs + 5 conclusions
Correspondence 3 letters
6 Sep 2022 To committee Letter from the Nexperia UK Country Manager relating to evidence given to the Committee, 17 August 2022
Parliament page
6 Sep 2022 To committee Letter from the Chair to the Nexperia UK Country Manager relating to evidence given to the Committee on Newport Wafer Fab, 2 August 2022
Parliament page
6 Sep 2022 To committee Letter from the Chairman of Future Horizons relating to Newport Wafer Fab, 22 July 2022
Parliament page