UK semiconductor strategy delayed again
Who will act as Secretary of State for Technology during Donelan's maternity leave?
The UK government's semiconductor strategy has been delayed again, apparently due to Secretary of State for Technology Michelle Donelan going on maternity leave.
The initiative, which has been in the works for over two years, was originally expected to be announced in March and later pushed back to 20th April.
However, Politico, citing a Whitehall official, says that the announcement has been delayed while the Department for Science, Innovation and Technology (DSIT) determines who will cover Donelan's maternity leave.
Although Donelan is due this month, there has been no announcement regarding her replacement yet. Once a stand-in is appointed, the government will decide who will announce the strategy, and when.
The delay on rolling out a dedicated UK semiconductor strategy has drawn criticism from companies and industry organisations, with some suggesting they may need to relocate their businesses abroad without financial support from UK taxpayers.
Back in February, Darren Jones, the chair of the Business, Energy and Industrial Strategy (BEIS) Committee in Parliament, criticised the government's inaction on implementing a national semiconductor strategy, describing it as an "act of national self-harm."
"It's a poor excuse for the government to hide behind its failure to publish a semiconductor strategy for not responding to our practical recommendations fully," he said.
"Countries across the globe have grasped the importance of securing semiconductor supply chains for their futures, why haven't we? While others race ahead, ploughing billions into setting up fabs or industry support, we're not even at the starting line."
MPs raised concerns last year about the UK government's neglect of the fast-growing semiconductor sector, especially in the context of a global shortage of essential components.
In November, the BEIS Committee published a report that highlighted the UK's heavy reliance on other countries for its chip supply.
The report warned that the government's lack of action in supporting the domestic semiconductor industry could lead to a critical loss of control over the sector.
A shortage of semiconductors can disrupt supply chains across the economy, as seen during the pandemic.
Some companies, which have already been affected by the pandemic, are now reassessing their investments in the UK due to their frustrations over the long wait. This delay is exacerbating concerns about the UK's ability to compete globally and attract high-tech investment in the future.
The government said in December that it was looking at national initiatives to increase the UK's share of the global chip sector, including the possibility of establishing a new institution as part of its infrastructure-building goals.
A draft semiconductor plan allegedly urged the Prime Minister to make efforts to reduce the UK's dependency on Taiwanese chips, due to the danger presented to that country by China.
The government's budget to support its semiconductor strategy is anticipated to be single figure billions of pounds, in contrast to the €43 billion and $52 billion subsidy programmes announced by the European Union and the United States.
Politico's source said that the national semiconductor strategy has secured an agreed "ballpark figure" for funding from the Treasury. However, the exact amount is still subject to potential last-minute negotiations.
DSIT has launched three feasibility studies to determine potential areas of focus for the UK semiconductor strategy.
The first study aims to explore how to facilitate the scaling up of chip design startups.
The second study focuses on boosting production capabilities, to enable UK businesses in the semiconductor supply chain to develop their manufacturing capabilities.
The third study examines ways to address the skills shortage in the semiconductor industry.
These studies should provide important insights and recommendations for the government as it finalises its semiconductor strategy in the coming days (or weeks...or months - Ed.).