Ministers have called on the government to do more for the UK’s semiconductor industry suggesting it would be more exposed to future disruption than other countries.
Suggesting the government should publish its long-awaited semiconductor strategy immediately, the Business, Energy and Industrial Strategy (BEIS) Committee report outlined that the support offered by the government to the industry is not currently enough to ensure future supply of computer chips to the UK.
“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,” BEIS said.
During the pandemic, the UK semiconductor industry was severely hit due the nonexistence of an end-to-end supply chain in the country, something that still poses a risk in the case of future global events, according to BEIS.
Arm Holdings PLC boss, Rene Haas also previously called for the government to release its strategy for the sector.
“The Government must not overlook the semiconductor industry any longer,” outlined the report.
“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 and the best use of any public funds or support.”
In response, a government spokesperson commented: “We are committed to supporting the UK’s vitally important semiconductor industry,” while speaking to the Guardian.
Adding: “Our strategy will be published as soon as possible,” after previous reports suggested it would be published by the autumn of 2022.
Shortages of computer chips are still affecting companies now, with Jaguar Land Rover recently outlining it would be cutting output of vehicles at two of its UK factories due to difficulties obtaining the parts.