Recommendations & Conclusions
16 items
1
Recommendation
Fifth Report - The semiconductor indust…
Acknowledged
The UK is an important part of global semiconductor supply chains, but it is reliant upon other countries. The UK alone will not have an end-to-end supply chain for semiconductors, but it has tradeable strengths. The Government should work more closely with allies in the EU and US, and elsewhere, …
Government response. The government recognises the need to work closely with international partners to guarantee security of chip supply, and is considering opportunities to cooperate directly and through multilateral fora.
Department for Business and Trade
2
Recommendation
Fifth Report - The semiconductor indust…
Acknowledged
We ask Ministers to consider whether the above recommendation, on closer working between the UK and allies in the EU and US, can be effectively delivered by requesting that the UK be invited to take part in relevant parts of the EU-US Trade and Technology Council. We further ask Ministers …
Government response. The government states that it will pursue plurilateral co-operation with like-minded nations and strengthen bilateral relationships to improve semiconductor supply resilience.
Department for Business and Trade
3
Conclusion
Fifth Report - The semiconductor indust…
Acknowledged
The exercise of controls under the National Security and Investment Act is still at an early stage. We note reservations about the speed of some assessments under the Act and under the export control process, and we will be conducting scrutiny of how powers under the National Security and Investment …
Government response. The Government acknowledges the importance of protecting the UK from national security risks arising from the semiconductor industry and will continue to work to make sure that the use of export and investment controls is clear and easy to understand …
Department for Business and Trade
4
Conclusion
Fifth Report - The semiconductor indust…
Deferred
We will further consider the Nexperia case, via the National Security and Investment Sub-Committee, once the period for appeal has expired. In the meantime, the Department should work proactively to ensure a successful transfer of the Newport site to a new owner. Ministers should update the Committee on progress made.
Government response. The government cannot provide an update on the Nexperia case until judicial review proceedings have been completed.
Department for Business and Trade
5
Recommendation
Fifth Report - The semiconductor indust…
Acknowledged
Semiconductors play a hidden but highly significant role in many parts of the UK’s critical national infrastructure. We request that the Government sets out which elements of the semiconductor supply chain constitute critical national infrastructure. (Paragraph 70) Role of Government
Government response. The Government recognises the significant role of semiconductors in critical national infrastructure and that ensuring security of supply is a priority; they are already considering risk across critical sectors and the National Semiconductor Strategy sets out plans to assess and …
Department for Business and Trade
6
Conclusion
Fifth Report - The semiconductor indust…
Deferred
We recognise that many Government departments have an interest in the semiconductor industry, and that these interests may overlap. But, in our view, the value of semiconductors to so many sectors of the UK economy and to UK national infrastructure, combined with the national security necessity of safeguarding 40 The …
Government response. The government states that the Department for Science, Innovation and Technology will drive innovation and work closely across government, including with the Department for Business and Trade, to ensure coherence in industrial strategy, research, and international cooperation, rather than BEIS …
Department for Business and Trade
7
Conclusion
Fifth Report - The semiconductor indust…
Accepted
While it is for those in the semiconductor industry to decide how to champion its causes, we believe that there is scope for the sector to play its part in improving the clarity of communication between the industry and Government, for instance through a collective voice for the sector.
Government response. The Government agrees that the UK’s approach to the global semiconductor sector must be industry-led and will launch a UK Semiconductor Advisory Panel to combine industry, government and academia to drive progress toward our vision for the sector.
Department for Business and Trade
8
Recommendation
Fifth Report - The semiconductor indust…
Accepted
The Government was correct in its decision to instigate a review of its approach to the semiconductor sector and in heralding a new strategy. The industry has waited for the strategy and will base crucial decisions upon it. The Government should lose no more time and should publish its Semiconductor …
Government response. The Government has published a clear, long-term National Semiconductor Strategy, which will secure areas of world leading strength in the technologies of the future, by focusing on its strengths in R&D, IP and design and compound semiconductors.
Department for Business and Trade
9
Recommendation
Fifth Report - The semiconductor indust…
Accepted in Part
We recommend that the forthcoming Semiconductor Strategy should include: • An analysis of the semiconductor production and supply chain, recognising different characteristics for different subsectors of the industry, and areas of strength and weakness; • A heatmap, showing where different semiconductor industries and niches are located within the UK, and …
Government response. The government will publish semiconductor resilience guidance, undertake crisis and contingency planning exercises, work with external suppliers, and evaluate the UK’s future domestic semiconductor manufacturing needs as part of a commissioned research project, falling short of the comprehensive analysis and …
Department for Business and Trade
10
Recommendation
Fifth Report - The semiconductor indust…
Accepted in Part
We recommend that the Government’s Semiconductor Strategy consider scope for development of the UK semiconductor industry in the following fields: • Intellectual property and design; • Supporting the design chain for leading edge node chips; • Matching UK manufacturing capability to UK design capability; • Developing manufacturing processes for silicon …
Government response. The government aims to double down on areas of UK expertise, maintain its lead in chip design and IP, and build a foothold in future semiconductor technologies, but does not commit to all the fields suggested in the recommendation, specifically …
Department for Business and Trade
11
Conclusion
Fifth Report - The semiconductor indust…
Accepted
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.
Government response. The government committed to investing up to £200 million into the sector over the next 2 years, and up to £1 billion over the next 10 years, alongside international R&D collaboration, domestic R&D, the creation of a ‘UK semiconductor infrastructure …
Department for Business and Trade
12
Recommendation
Fifth Report - The semiconductor indust…
Accepted in Part
The Government must not overlook the semiconductor industry. 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. …
Government response. The government is reviewing its approach to supporting the growth of technology companies, including in the semiconductors sector, and will build on existing R&D spending through a commitment to up to £200 million in funding for research and development across …
Department for Business and Trade
13
Recommendation
Fifth Report - The semiconductor indust…
Accepted
The UK is missing out on inward investment at a crucial time for the semiconductor industry, and we are competing with other countries. The Government should secure partnerships via the US CHIPS Act, and engage with Taiwanese and other major companies to secure significant inward investment in the UK.
Government response. The government states that DBT is already supporting businesses in attracting investment and entering new markets, including expanding the High Potential Opportunities tech programme and the Digital Trade Network in Taiwan; international partnerships are at the heart of their approach.
Department for Business and Trade
14
Recommendation
Fifth Report - The semiconductor indust…
Accepted
We welcome the steps being taken by the Government to encourage talent from overseas, although it has yet to be seen whether they will help to solve the challenges faced by the semiconductor industry in recruiting and retaining workers with the necessary skills. The forthcoming Semiconductor Strategy should not shirk …
Government response. The government recognizes the importance of skills across our semiconductor sector, and will train more highly skilled engineers, through expanding our support for Centres for Doctoral Training (CDTs) in semiconductor related fields, supporting schools and higher education, together with industry …
Department for Business and Trade
9
Recommendation
Sixth Report - The semiconductor indust…
We recommend that the forthcoming Semiconductor Strategy should include: • An analysis of the semiconductor production and supply chain, recognising different characteristics for different subsectors of the industry, and areas of strength and weakness; • A heatmap, showing where different semiconductor industries and niches are located within the UK, and …
Department for Business and Trade
10
Recommendation
Sixth Report - The semiconductor indust…
We recommend that Government’s Semiconductor Strategy consider scope for development of the UK semiconductor industry in the following fields: • Intellectual property and design; • Supporting the design chain for leading edge node chips; • Matching UK manufacturing capability to UK design capability; • Developing manufacturing processes for silicon semiconductors; …
Department for Business and Trade