Military Review

British semiconductor manufacturers have announced their readiness to move business to the US or EU due to lack of proper state support

British semiconductor manufacturers have announced their readiness to move business to the US or EU due to lack of proper state support

The UK semiconductor industry is crying out for financial support from the government, and analysts have warned that the country risks losing its microchip firms to the US and other countries if it doesn't act soon.

Rishi Sunak became Britain's prime minister in October, inheriting a grim economic backdrop from his predecessor, Liz Truss. His government has yet to announce a strategy outlining the UK's efforts to support the chip industry. And investors in UK semiconductor companies are increasingly disappointed.

Cambridge-based Pragmatic Semiconductor, which makes non-silicon chips, has warned it could be forced to move overseas if the government doesn't release an industry plan soon.

For companies like ours, it should make economic sense to continue operating and manufacturing here, and if there are great potential economic benefits and government support packages abroad, then moving is the only sensible business decision.

Scott White, CEO of Pragmatic Semiconductor, told reporters.

The UK is a global player in the microcircuit market, specializing in the development, intellectual property, research and production of composite semiconductors. It is also home to one of the powerful semiconductor-related assets in the form of chip developer Arm. The Cambridge-based chips are licensed by Arm in about 95% of the world's smartphones.

The microchip firm at the semiconductor "cluster" in Newport, Wales, has also warned it could be forced to relocate to the US or the EU if the government does not act within the next six months.

We would like to stay and grow in the UK… but we also need to do what the shareholders want and go where the money is.

IQE CEO Américo Lemos said in a recent interview.

The concerns of business owners are not accidental. In other countries, things are different. President Biden signed into law the Chips and Science Act, a $280 billion package that includes $52 billion in funding for domestic semiconductor manufacturing. In the meantime, the EU has allocated 43 billion euros to the European semiconductor industry, with the goal of producing 20% ​​of the world's semiconductors by 2030.

It was promised that a UK-backed semiconductor strategy would be published last year. But Rishi Sunak's government has faced a series of delays due to political instability in the country.

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  1. Luka Nord
    Luka Nord 14 February 2023 18: 52
    The Anglo-Saxons moved something with rolls .. They smell something!
    1. Shurik70
      Shurik70 14 February 2023 18: 59
      Was it not the very same Anglo-Saxons who resented state support for grain producers in Russia?
      And, most importantly, in the same words: "it undermines competitiveness! not market relations!"
      And now the lack of state support, but already in England, also "undermines competitiveness"
      1. Blacksmith 55
        Blacksmith 55 14 February 2023 19: 11
        Shurik, but this is different. ))))
        In general, many in the world have realized that globalization is not always good.
        It is good to produce everything in one's own country, then no sanctions are terrible.
        America has also grown wiser, they are transferring production to themselves. Although in the global "factory" (China) labor force is cheaper.
  2. Bingo
    Bingo 14 February 2023 19: 12
    The Brit collapses. They return to their usual historical appearance - shabby islands with sheep herds somewhere in the outskirts. But I must say, they held out for a long time, for almost three centuries they made sailors out of themselves ...
    I wonder how they planned to remain the wallet of the EU, leaving the EU? And for the US, the entire EU does not need an overseer - they look after the rest themselves.
    So, limes, remember the past - from now on you are Saxons. And your life is a solid SUXX
    1. Bolt cutter
      Bolt cutter 14 February 2023 19: 19
      And your life is a solid SUXX
      Oh Shlomo, yes, your Schaub stood as he dangles tongue .
    2. low war
      low war 14 February 2023 20: 10
      In mid-September 2021, Australia, the United Kingdom and the United States announced the creation of a new military-political alliance. It received the name AUKUS from the first letters and abbreviations of the names of its constituent states. To date, 11 countries remain in the partnership. De facto it is also an economic alliance.
  3. opuonmed
    opuonmed 14 February 2023 19: 20
    from this RF is not cold and not hot! where they can and produce
    1. Bolt cutter
      Bolt cutter 14 February 2023 19: 26
      where they can and produce
      Most likely, the main offices and R&D departments will remain in the UK.
      1. dmi.pris1
        dmi.pris1 14 February 2023 19: 44
        Most likely it will be so. Production and brains will go away. At one time, the Britons were pioneers in the field of research in the atomic sphere. And in the end they ended up with a bare belly. But that was another story
        1. Bolt cutter
          Bolt cutter 14 February 2023 20: 11
          and brains are gone.
          Brains will remain - living in UK is quite comfortable. Production-maybe leave.
          ended up with a bare belly
          Rolls Royce Nuclear seems to be alive for now.
          1. Al manah
            Al manah 14 February 2023 20: 35
            Living in UK is quite comfortable.

            Not only to everyone:
            1. Bolt cutter
              Bolt cutter 14 February 2023 20: 40
              Not only everyone
     is blocked in England. And what poor refugees feel bad here is not my problem. Let them run back. For those who legally lives and works, especially highly paid electronic engineers (60-100 thousand per year on average) are quite naman here yes .
              1. low war
                low war 14 February 2023 23: 04
                What? And really no construction and demolishion (as grandfather Shchukar would say)? And where should the language (communication) be kept or stuck, judging by the fact that you "graze" on the Russian forum :)?
                1. Bolt cutter
                  Bolt cutter 14 February 2023 23: 54
                  you "graze" on the Russian forum
                  I "graze" in a lot of places on the Internet yes . Information - it is such - it is better to have it versatile. What do you really have to say?
  4. UAZ 452
    UAZ 452 14 February 2023 19: 29
    We need to invite them to the Russian Federation with all their facilities.
    1. dmi.pris1
      dmi.pris1 14 February 2023 19: 45
      And even better, make sure that your own people do not leave yes
  5. notingem
    notingem 14 February 2023 19: 37
    So in the photo it looks like a clutch disc for a budget. Is this a microcircuit now?
    1. dmi.pris1
      dmi.pris1 14 February 2023 19: 50
      Did you put a comic smiley or something? belay Otherwise, ignorant people will start ordering from budget Chinese.
  6. Fangaro
    Fangaro 14 February 2023 21: 08
    Is there a lot of microelectronics patented and produced in the UK?
    ARM is theirs?
    1. Bolt cutter
      Bolt cutter 14 February 2023 21: 27
      ARM is theirs?
      Theirs he, with Cambridge laughing
      -------------------------------------------------- -----------------------------------
  7. Beaver
    Beaver 14 February 2023 21: 34
    The head of tsmc has already said that the cost of manufacturing chips in the United States will be one and a half times more expensive than in Taiwan, and investments will be required 5 times more. He also recalled that an attempt to expand production in the United States in 1996 turned out to be a nightmare for the company.
  8. Ed1970
    Ed1970 15 February 2023 06: 13
    Semiconductor production is in the very near and inevitable future combat robots. Robots may even be worse than nuclear weapons in something ... Now everyone who wants to live will begin to "move their rolls."
    I wonder if they want to live in Russia?