New UK semiconductor institute will draw on experts to attract investment, support SMEs and generate growth

The UK's efforts to position itself as a key player in the development of semiconductor technologies have received a shot in the arm after authorities detailed plans to establish an independent institute that will promote the sector and look to attract foreign investment.

The UK Semiconductor Institute is tasked with delivering the UK's £1bn National Semiconductor Strategy, which aims to build resilience in the supply chain, protect against security threats, and generate growth in the domestic sector.

The new body, announced in May, will be a single point of contact to promote the sector to investors, and will draw on expertise from government, industry, and academia. While the UK is not a major producer of semiconductors – Taiwan leads the way on that front – the institute will focus on specific areas where the country is regarded as being particularly strong: compound chips, research and development, and design. In addition, the UK government says it will "bring industry together to boost the specialist skills needed to help grow the sector."

The government describes the institute's creation as a "major step towards implementing the UK Semiconductor Infrastructure Initiative," which was announced in the national strategy last year and is focused on supporting SMEs and startups.

Semiconductors are crucial to the operation of technologies like electric vehicles, mobile phones, and satellites. A supply chain crunch brought about by the Covid-19 pandemic hampered the ability of multiple businesses reliant on semiconductors – such as those in the automotive and consumer electronics sectors – to meet demand, and governments around the world are keen to ensure such a scenario doesn't repeat itself.

Earlier this year, the geopolitical importance of semiconductors was highlighted when the UK government expanded its export control regime to cover certain equipment used in manufacturing semiconductors, as well as the chips themselves.

Securing a 'robust and innovative future'

The government says its new institute will "act as a coordinated entry point for technology businesses and international partners who want to work with the UK semiconductor sector to boost innovation, research and commercialisation."

Figures from within industry are optimistic about the institute's prospects. "The UK Semiconductor Institute will ensure the UK has a strategic and coordinated approach to developing new technologies, improving skills and exploiting areas in which the UK has existing strengths," says Martin McHugh, CEO of the Compound Semiconductor Applications Catapult.

Others commenting on the decision to set up the institute include Julian David, CEO of the techUK trade association. "We are confident that this institute will serve as an authoritative and empowered body," he says.

"By bringing together government, universities and the private sector, the institute will be pivotal in advancing R&D, skills development, and fostering international collaboration," he adds. "This collaboration will secure a robust and innovative future for the UK's semiconductor landscape."