The UK Needs a Chips Strategy

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Series Details Number 147
Publication Date December 2022/January 2023
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The global supply chain for semiconductors is becoming more politicised. In October, the Americans unveiled new controls on exporting high-end chips and chip-making equipment to China, to constrain its ability to lead in new technologies like artificial intelligence. The US and EU are both promising large subsidies to onshore semiconductor manufacturing, fearful of relying on Taiwan for cutting-edge chips. The British government has been comparatively reactive. But after more than a year of equivocation, it has said that it will force a Chinese-owned firm, Nexperia, to unwind its purchase of the UK chipmaker Newport Wafer Fab (NWF), on national security grounds. The UK should instead focus on proactively nurturing its strengths.

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ESO Records
European Commission: COM (2022) 46: Proposal for a Regulation establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act)

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