techUK urges the UK Government to speed up the implementation of the National Semiconductor Strategy
The technology trade association releases a six-point-plan spurring leadership, competitiveness, and innovation to support economic growth.
Two years after the release of its first UK Plan for Chips report, techUK has published an updated review, urging the UK Government to accelerate the implementation of its ambitious National Semiconductor Strategy.
Semiconductors are the foundation of modern digital technology, powering everything from day-to-day consumer electronics, vehicles, defence, healthcare, to the data centres powering Artificial Intelligence (AI). As the industry is projected to reach a $1 trillion by 20301, securing the UK’s position in this critical sector is essential for economic growth, technological leadership, and national resilience.
techUK welcomed the publication of the National Semiconductor Strategy in 2023, which incorporated key recommendations from its original UK Plan for Chips. However, while the Strategy set a strong vision, progress since its launch has been incremental. To ensure the UK capitalises on its semiconductor potential, decisive action is now required.
In this latest paper, techUK outlines three key missions the UK Government must pursue to position the UK as a global leader in semiconductors:
• Turn current strengths into leadership
The UK has globally competitive capabilities in design and Intellectual Property (IP), R&D and compound semiconductors. To establish global leadership, the UK must build on these strengths with targeted policies and financial support, ensuring that high-potential, globally competitive sub-sectors can scale and thrive.
• Ensure the UK’s strengths have greater access to investment
Despite having the world’s third-largest tech sector, many UK semiconductor startups struggle to secure large-scale private investment. The UK must foster a dynamic investment ecosystem that supports semiconductor innovation, providing access to both private capital and public funding. A strong investment climate will enable businesses to grow, commercialise new technologies, and compete on the global stage.
• Capitalise on UK strengths in the global supply chain by forming strategic partnerships with peer countries
The semiconductor supply chain is deeply interconnected, with global dependencies on UK expertise and vice versa. The UK Government must leverage these interdependencies by forging strategic international partnerships, fostering joint research and development, and securing investment and innovation opportunities. By strengthening global collaborations, the UK can reinforce its role as a key player in the semiconductor landscape.
To drive these missions forward, techUK proposes a six-point delivery plan to move from strategy to implementation:
1. Retain our position as a global leader on chip design intellectual property
2. Support applied R&D and manufacturing
3. Incentivise investment into new areas of growth, including advanced designs, emerging technologies, and end user readiness.
4. Promote innovation and support scale ups through access to markets and private capital
5. Nurture the skills we need for the chips industry
6. Strengthen the UK sector through global partnerships
techUK urges the UK Government to act decisively in implementing this plan, ensuring the UK remains competitive in the rapidly evolving semiconductor industry. By turning strategic intent into tangible outcomes, the UK can secure its place as a global semiconductor leader and drive long-term economic prosperity.
Laura Foster, Associate Director for Technology and Innovation, techUK said: “The UK has a unique opportunity to lead in the global semiconductor landscape, but success will require bold action and sustained commitment. By accelerating the implementation of the National Semiconductor Strategy, recognising its role as a key strategic technology and underpinning its importance within the Industrial Strategy, we can unlock investment, foster innovation, and strengthen our position in this critical industry.
“We must act at pace to secure the UK’s semiconductor future and as such our technological and economic resilience.”
