- Skills shortages, high costs and low public awareness threaten UK’s position in vital semiconductor race
The government must act now to secure the future of the vital UK semiconductor industry, according to a roundtable of science and industry experts organised by the Institute of Physics (IOP) and the Royal Academy of Engineering.
A report published today setting out their key findings concludes that the UK’s role in this multi-billion-pound global industry is being held back by skills shortages, high costs and low public awareness of semiconductors.
The IOP and Academy are now calling for the government to urgently publish its long-awaited semiconductor strategy, which must tackle these challenges and support UK businesses to grow and compete in the fast-paced global race where frontrunners such as the US, China and Taiwan continue to dominate.
The intervention comes after questions around foreign influence in the UK semiconductor market and a world shortage of semiconductors caused a drop in UK car production and threw the spotlight on this crucial technology.
The report found:
- Skills shortages at all levels, from school-age physics through to specialist electrical engineering skills, exacerbated by a shortage of specialist physics teachers, with a particular skills gap among women and underrepresented groups.
- High costs for design tools and competition from big international players stifling innovation and stopping many new companies getting off the ground.
- Low levels of public awareness and understanding of semiconductors, compounding the recruitment challenges companies face.
A national ‘semiconductor institute’, which the government is set to explore through a £900k feasibility study, could be an important step towards the solution, with science and industry leaders saying a national body could speak for the sector, support small businesses, and offer education and training.
Semiconductors are central to the modern world, and found in thousands of products such as computers, smartphones, appliances, gaming hardware and medical equipment.
The right support for a thriving homegrown semiconductor industry would, says the report, mitigate against the UK relying on other countries for this vital technology and reduce industry disruption from geo-political factors – such as the recent decision to not allow a Chinese firm to operate a large Newport semiconductor factory.
Professor Nick Jennings CB FREng FRS, Chair of the Royal Academy of Engineering’s Engineering Policy Centre Committee, said: “Government intervention is crucial to achieve strategic advantage for the UK, both in capitalising on commercial opportunities and improving the security of supply and resilience. Other countries are continuing to invest significantly in their own semiconductor industries and the UK will fall behind without timely government action and a coherent strategy.
“What is needed for the UK to build upon its strengths in semiconductor innovation is a nuanced approach to the industry that considers all the elements and implications to the semiconductor ecosystem as a whole. Government support may need to vary by industry segment, for example, by supply chain, application, or emerging technology if the UK’s ambitions for strategic advantage in areas such as quantum technology and artificial intelligence are to be realised.”
The IOP’s Director of Science, Innovation and Skills, Louis Barson, called on government to act on the findings of the report: “The many challenges the UK semiconductor industry is facing are clear, from skills shortages to rising costs pricing out innovative small businesses.
“This strategically crucial industry can power the technologies and jobs the UK needs – but its future cannot be allowed to be one of domestic under-investment and extended, vulnerable global supply chains. The future economy depends on ensuring we have unobstructed access to critical technologies like semiconductors – and that starts with a strong home-grown industry.
“We call on government to hear the industry’s concerns, set out its view on a national semiconductor institute, and publish its long-awaited semiconductor strategy. This could set us on the path to becoming the science superpower we clearly have the talent and determination to be.”
Notes for editors
Institute of Physics / Royal Academy of Engineering Roundtable Report UK Semiconductor Challenges and Solutions Published March 2023
The Institute of Physics is the professional body and learned society for physics in the UK and Ireland. It seeks to raise public awareness and understanding of physics, inspire people to develop their knowledge, understanding and enjoyment of physics and support the development of a diverse and inclusive physics community. As a charity, it has a mission to ensure that physics delivers on its exceptional potential to benefit society.
The Royal Academy of Engineering is harnessing the power of engineering to build a sustainable society and an inclusive economy that works for everyone. In collaboration with our Fellows and partners, we’re growing talent and developing skills for the future, driving innovation and building global partnerships, and influencing policy and engaging the public. Together we’re working to tackle the greatest challenges of our age.