Skip to main content

UK microchip supply has failed.

 

British businesses are "at risk" because the government has failed to set a coherent blueprint for a microchip supply industry, according to a critical report from the influential cross-party business select committee of MPs. A semiconductor strategy was due this autumn from the Department for Digital, Culture, Media and Sport. It added that Britain is also missing out on inward investment and falling behind other governments taking the issue more seriously. Semiconductors are the brains of modern electronics, vital for everything from consumer products to healthcare and cars.

The crisis in the UK industry, from continuing uncertainty over the ownership of the technology firm Arm Holdings to government intervention over China's links to the chip manufacturer Newport Wafer Fab, has thrust the lack of a strategy into the spotlight. Globally, the industry is worth more than $500 billion and is expected to be more than $1 trillion by 2030. The UK, meanwhile, is racing to prevent supply disruptions from geopolitical disputes such as the tensions between China and Taiwan, a key semiconductor producer. In recent months, the US and the EU announced they were putting $53 billion and €43 billion behind growing their own industries.

Europe plans to produce 20 per cent of the world's semiconductors by 2030 as opposed to 8 per cent today. In this race for chip dominance, the US has gone a step further and banned exports to China that could help it develop advanced semiconductor technology. South Wales has a cluster of sophisticated compound semiconductor businesses and research centres. It said the primary responsibility for these "essential ingredients" should be clarified and should lie with the department for business as it is responsible for industrial strategy rather than the digital department or other government areas.

At a time when the EU and US have both announced substantial state investment in the sector, there is a palpable sense of frustration at the delay in the UK's strategy.

www.sba.tax

Labels:

Comments

  1. Christine28 November 2022 at 14:25

    Why is the UK delay this? It's such an important area today so why isn't the UK devoting a lot more resources to this?

    ReplyDelete
    Replies
    1. Jeremy28 November 2022 at 14:54

      It's either because they just don't know what to do or can't make up their minds as to which is the right course of action or it's because some are receiving money from other Governments (China, etc) to not invest heavily in this sector. It could be all of these or just 1 or 2.

      Delete
    2. Aaron28 November 2022 at 16:21

      They are just incompetents and too many of them are working in cozy jobs in the Government. The world is fighting to find a way to increase production of microchips and the UK is just waiting around to see what happens. It's unbelievable!

      Delete
    3. Jeremy28 November 2022 at 17:05

      Yes, I agree. There are many of them just wasting time, not doing much to move the needle. It’s not just our leaders that are at fault. We are all to blame because we keep voting them into office and accepting things like Brexit to go along which is and will bring many more bad things/changes for us all.

      Delete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

India- UK trade deal.

  According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more