Source · Select Committees · Business and Trade Committee
Recommendation 12
12
Accepted in Part
Paragraph: 118
The Government must not overlook the semiconductor industry.
Recommendation
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. This could be via additional funding or guarantees made available via the Compound Semiconductor Applications Catapult, Innovate UK or the British Business Bank. The British Business Bank should lead on scale-up investment and capital investment from public and private sources, whilst the Catapult should continue to bridge the gap between research and industry, to support start-ups.
Government Response Summary
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 the current spending review period. The Government intends to announce plans by the autumn to further support the competitiveness of the semiconductor manufacturing sector.
Paragraph Reference:
118
Government Response
Accepted in Part
HM Government
Accepted in Part
The UK has a world class research and development ecosystem, and has a proud history of supporting our innovative companies to grow, from spin-outs through to international expansion. The Government is currently in the process of reviewing its approach to supporting the growth of technology companies, including in the semiconductors sector. The recently published Science and Technology Framework has committed £370 million in new funding and projects that will help with ensuring the UK has the skills and infrastructure to take a global lead in game-changing technologies. Through the Spring Budget, the Government also announced plans to launch the Long Term Investment for Technology and Science (LIFTS) programme, to support Defined Contribution (DC) scheme investment into innovative UK companies. The scheme will provide a key stimulus for industry to create the structures needed to mobilise DC scheme investment into our most cutting-edge companies. To unlock the full potential of the semiconductor sector, and catalyse future investment, the National Semiconductors Strategy will build on existing R&D spending through a commitment to up to £200 million in funding for research and development across the current spending review period (2024/25) including through projects to fund early stage research, support innovation in businesses and improve access to talent. 10 The Semiconductor industry in the UK: Further Government Response Alongside this, the Government intends to announce plans by the autumn to further support the competitiveness of the semiconductor manufacturing sector that is critical to the UK tech ecosystem or the UK’s national security.