UK chip firms need Treasury support to 'compete globally', says trade body – UKTN (UK Technology News
A deep tech trade association has called on the Treasury to provide more support to the UK’s semiconductor sector to prevent it from falling behind other nations.
Techworks, which represents the interests of 280 member companies, said the UK “offers the lowest level of incentives to the semiconductor industry among the G7”.
Ahead of the Spring Budget, it has called on the chancellor to expand R&D tax credits for investments in semiconductor manufacturing.
It has also called for a matched funding or lead investor scheme for companies upgrading semiconductor facilities, along with incentives to grow UK supply chains.
In May last year the government unveiled its long-awaited semiconductor strategy, which is set to provide funding of up to £1bn over the next 10 years.
While the UK has many small to medium-sized semiconductor companies across the UK, Techworks says the UK is “reticent to invest heavily in high-tech industrial growth”.
It comes as Graphcore, which competes with US chip behemoth Nvidia, is reportedly exploring a sale into foreign ownership.
“UK chip manufacturers and vendors need a level playing field to compete globally and this means, as a minimum, a support mechanism for capital expenditure and access to finance for the necessary step-up expenditure to remain competitive,” said Charles Sturman, CEO of Techworks and chair of Techworks’ Semiconductor Leadership Group.
The trade body has also called for the government to facilitate the flow of long-term capital into semiconductor companies and to reform the apprenticeship system to increase the supply of engineers and technicians.
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