UK Unveils $1.2 Billion Investment Plan for Semiconductor Sector

by | 19. May 2023 - 11:09 | Economy

Over the next decade, the country aims to catch up to industry leaders.

The UK has revealed a £1 Billion ($1.2 billion) Investment strategy in its domestic semiconductor industry over the next decade. The Department for Science, Innovation and Technology announced the commitment this Friday following the Thursday concluded “Hiroshima Accord” between the UK and Japan. The accord is aimed at boosting cooperation between the countries’ armed forces and forming a revised partnership in the semiconductor industry to bolster chip supply chains.

The now unveiled investment is intended to make the UK’s domestic semiconductor industry more competitive and align with the Hiroshima Accord, as approximately $250 million of the plan will be allocated to boost international partnerships. The underlying three key objectives of the plan are the growth of the domestic sector, mitigating the risk of supply chain disruptions, and protecting the UK’s national security.

Semiconductors are parts of almost all electronic devices; however, they require critical minerals such as silicon and gallium. Because the UK is highly dependent on imports of these and other materials such as rare earths from nations like China, the country is trying to make its supply chains more resilient and diversified. In March, the government adjusted its Critical Minerals Strategy, responding to geopolitical tensions and unsure forecasts.

Photo: iStock/silverjohn

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