Sixth Report - The semiconductor industry in the UK: the Government’s response

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 how they are positioned in relation to the supply of relevant skills, equipment, research capability, and in relation to other factors valued by firms in those industries; and • An account of which industries in the UK and which key products are dependent upon a secure supply of semiconductors at reasonable cost. • In addition, we recommend that the government produces a risk and resilience strategy for the semiconductor industry alongside its Semiconductor Strategy, as a matter of urgency. (Paragraph 91) 10 The semiconductor industry in the UK: the Government’s response

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; • Development of existing strengths in compound and advanced material semiconductors, to meet demand in emerging markets; Facilitating the construction of new fabs, including consideration of an open access fab in the South Wales cluster.