{"id":1520,"date":"2023-02-13T11:53:32","date_gmt":"2023-02-13T11:53:32","guid":{"rendered":"https:\/\/www.cic.vc\/?p=1520"},"modified":"2024-04-16T12:21:57","modified_gmt":"2024-04-16T12:21:57","slug":"british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips","status":"publish","type":"post","link":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/","title":{"rendered":"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips"},"content":{"rendered":"<p><span class=\"text-small\">KEY POINTS<\/span><\/p>\n<ul>\n<li><span class=\"text-small\">U.K. semiconductor bosses are pleading with the government for subsidies amid fears that some chip firms will be forced to move overseas.<\/span><\/li>\n<li><span class=\"text-small\">The U.S. and EU have announced multibillion-dollar packages aimed at boosting domestic chip production, and industry executives worry the lack of a similar strategy from the U.K. is harming the country\u2019s competitiveness.<\/span><\/li>\n<li><span class=\"text-small\">Prime Minister Rishi Sunak\u2019s administration is under pressure to publish its planned chip strategy, which has faced delays due to political instability.<\/span><\/li>\n<\/ul>\n<p><span class=\"text-small\">Prime Minister Rishi Sunak\u2019s government is yet to announce a strategy outlining U.K. efforts to support the chip industry. And semiconductor bosses in the country are growing frustrated.<\/span><\/p>\n<p><span class=\"text-small\"><a href=\"https:\/\/www.pragmaticsemi.com\/\" target=\"_blank\" rel=\"noopener\">Pragmatic Semiconductor<\/a>, a Cambridge, England-based startup that produces nonsilicon chips, warned it may be forced to relocate overseas if the government doesn\u2019t issue a plan for the industry soon.<\/span><\/p>\n<p>&#8220;It has to make economic sense for companies like ours to continue to operate and manufacture here, and if there are greater potential economic benefits and governmental support packages abroad, then relocation is the only sensible business decision&#8221;, <span class=\"text-small\"><strong>Scott White, CEO of Pragmatic Semiconductor, told CNBC.<\/strong><\/span><\/p>\n<p><span class=\"text-small\">Britain is an understated player in the global chip market, specializing in design, intellectual property, research and fabrication of compound semiconductors.<\/span><\/p>\n<p><span class=\"text-small\">It is also home to one of the most coveted semiconductor-related assets in the form of chip designer Arm. Based in Cambridge, Arm-licensed chips are used in roughly 95% of the world\u2019s smartphones.<\/span><\/p>\n<p><span class=\"text-small\">Semiconductors, and the mainly East Asia-based supply chain behind them, have become a thorny issue for world governments after a global shortage led to supply problems for major automakers and electronics manufacturers.<\/span><\/p>\n<p><span class=\"text-small\">The Covid-19 pandemic exposed an overreliance on manufacturers from Taiwan and China for semiconductor components. That dependency has become fraught with tensions between China and Taiwan on the rise.<\/span><\/p>\n<p><span class=\"text-small\">TSMC<\/span><span class=\"text-small\">, the Taiwanese semiconductor giant, is by far the largest producer of microchips. Its chipmaking prowess is the envy of many developed Western nations, which are taking measures to boost domestic production of chips.<\/span><\/p>\n<p><span class=\"text-small\">IQE<\/span><span class=\"text-small\">, a microchip firm in the semiconductor \u201ccluster\u201d in Newport, Wales, has also warned it may be forced to relocate to the U.S. or EU if the government does not act in the next six months.<\/span><\/p>\n<p><span class=\"text-small\">\u201cWe would love to stay in the UK and have committed to grow in the UK \u2026 but we also have to do what shareholders want and go where the money is,\u201d Americo Lemos, IQE\u2019s CEO, told The Times newspaper.<\/span><\/p>\n<p><span class=\"text-small\">A government spokesperson told CNBC: \u201cWe are committed to supporting the UK\u2019s vitally important semiconductor industry. Our strategy will grow the sector further and make sure we have a resilient supply chain. The strategy will be published as soon as possible.\u201d<\/span><\/p>\n<p><span class=\"text-small\">In the U.S., President Joe Biden signed into law the CHIPS and Science Act, a $280 billion package that includes $52 billion of funding to boost domestic semiconductor manufacturing.<\/span><\/p>\n<p><span class=\"text-small\">The EU, meanwhile, has earmarked 43 billion euros ($45.9 billion) for Europe\u2019s semiconductor industry with the aim of producing 20% of the world\u2019s semiconductors by 2030.<\/span><\/p>\n<p><span class=\"text-small\">China, too, has been forced to revamp its chip strategy after facing strict trade sanctions from the U.S. In December, the country was said to be preparing a more than 1 trillion yuan ($147 billion) package for its chip industry, according to Reuters.<\/span><\/p>\n<p><strong><span class=\"text-small\">\u2018Act of national self harm\u2019<\/span><\/strong><br \/>\n<span class=\"text-small\">U.K. tech industry executives have said the lack of a similar strategy from the government is hurting the country\u2019s competitiveness.<\/span><\/p>\n<p><span class=\"text-small\">The U.K. likely won\u2019t have the kind of financial firepower to match those bold spending packages, they say. However, they\u2019re hopeful the country will commit to investment in the several millions, tax incentives and an easier immigration process for high-skilled workers.<\/span><\/p>\n<p><span class=\"text-small\">\u201cChasing to catch up is not within the spending power of the U.K., not even remotely,\u201d Simon Thomas, CEO of Paragraf, a British firm developing and producing graphene-based electronics, told CNBC.<\/span><\/p>\n<p><span class=\"text-small\">On Feb. 3, lawmakers on the Business, Energy and Industrial Strategy (BEIS) committee called for government action on the semiconductor industry, labeling the lack of a coherent microchip strategy an \u201cact of national self harm.\u201d<\/span><\/p>\n<p><span class=\"text-small\">The government\u2019s BEIS agency was on Tuesday disbanded and replaced under a shuffle from Sunak.<\/span><\/p>\n<p><span class=\"text-small\">The business and industrial strategy portfolio now falls under the remit of Kemi Badenoch, minister for a newly formed Department for Business and Trade, while a Department for Science, Innovation and Technology is being headed up by Michelle Donelan.<\/span><\/p>\n<p><span class=\"text-small\">Sunak became Britain\u2019s third prime minister of the year in October, inheriting a gloomy economic backdrop from his predecessor Liz Truss.<\/span><\/p>\n<p><span class=\"text-small\">He is under pressure from chip bosses to outline a strategy for the industry \u2014 and fast.<\/span><\/p>\n<p><span class=\"text-small\">Russ Shaw, founder of Tech London Advocates, said the government needed to \u201cstep up.\u201d London has been \u201cinordinately distracted by chaos.\u201d<\/span><\/p>\n<p><span class=\"text-small\">A U.K. semiconductor strategy was expected to come out last year. But it has faced a series of delays due to political instability. The government previously suggested establishing a national institution, among other initiatives, to boost its semiconductor industry.<\/span><\/p>\n<p><span class=\"text-small\">\u201cThe rumors I\u2019ve heard is [it may arrive] any day now,\u201d Chris Ballance, co-founder of U.K. quantum computing startup Oxford Ionics, told CNBC. However, he added the process had been \u201cgoing on for the last four or five months.\u201d<\/span><\/p>\n<p><em><span class=\"text-small\">Correction: Russ Shaw is founder of Tech London Advocates. An earlier version misstated the name of the advocacy group.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>KEY POINTS U.K. semiconductor bosses are pleading with the government for subsidies amid fears that some chip firms will be forced to move overseas. The U.S. and EU have announced multibillion-dollar packages aimed at boosting domestic chip production, and industry executives worry the lack of a similar strategy from the U.K. is harming the country\u2019s [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[6,29],"tags":[50],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips - Cambridge Innovation Capital<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips - Cambridge Innovation Capital\" \/>\n<meta property=\"og:description\" content=\"KEY POINTS U.K. semiconductor bosses are pleading with the government for subsidies amid fears that some chip firms will be forced to move overseas. The U.S. and EU have announced multibillion-dollar packages aimed at boosting domestic chip production, and industry executives worry the lack of a similar strategy from the U.K. is harming the country\u2019s [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/\" \/>\n<meta property=\"og:site_name\" content=\"Cambridge Innovation Capital\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-13T11:53:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-16T12:21:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"1701\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Lewis Harrison-Pinder\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cic_vc\" \/>\n<meta name=\"twitter:site\" content=\"@cic_vc\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lewis Harrison-Pinder\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/\",\"url\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/\",\"name\":\"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips - Cambridge Innovation Capital\",\"isPartOf\":{\"@id\":\"https:\/\/www.cic.vc\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp\",\"datePublished\":\"2023-02-13T11:53:32+00:00\",\"dateModified\":\"2024-04-16T12:21:57+00:00\",\"author\":{\"@id\":\"https:\/\/www.cic.vc\/#\/schema\/person\/01f4144d50b30601928e7ad98fcf6cbc\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#primaryimage\",\"url\":\"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp\",\"contentUrl\":\"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp\",\"width\":1200,\"height\":1701},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.cic.vc\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.cic.vc\/#website\",\"url\":\"https:\/\/www.cic.vc\/\",\"name\":\"Cambridge Innovation Capital\",\"description\":\"We enable visionaries to build global, category-leading companies.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.cic.vc\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.cic.vc\/#\/schema\/person\/01f4144d50b30601928e7ad98fcf6cbc\",\"name\":\"Lewis Harrison-Pinder\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.cic.vc\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f8cbba69da3995ffe9ee74c57f0a6637?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f8cbba69da3995ffe9ee74c57f0a6637?s=96&d=mm&r=g\",\"caption\":\"Lewis Harrison-Pinder\"},\"url\":\"https:\/\/www.cic.vc\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips - Cambridge Innovation Capital","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/","og_locale":"en_GB","og_type":"article","og_title":"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips - Cambridge Innovation Capital","og_description":"KEY POINTS U.K. semiconductor bosses are pleading with the government for subsidies amid fears that some chip firms will be forced to move overseas. The U.S. and EU have announced multibillion-dollar packages aimed at boosting domestic chip production, and industry executives worry the lack of a similar strategy from the U.K. is harming the country\u2019s [&hellip;]","og_url":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/","og_site_name":"Cambridge Innovation Capital","article_published_time":"2023-02-13T11:53:32+00:00","article_modified_time":"2024-04-16T12:21:57+00:00","og_image":[{"width":1200,"height":1701,"url":"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp","type":"image\/jpeg"}],"author":"Lewis Harrison-Pinder","twitter_card":"summary_large_image","twitter_creator":"@cic_vc","twitter_site":"@cic_vc","twitter_misc":{"Written by":"Lewis Harrison-Pinder","Estimated reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/","url":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/","name":"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips - Cambridge Innovation Capital","isPartOf":{"@id":"https:\/\/www.cic.vc\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#primaryimage"},"image":{"@id":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#primaryimage"},"thumbnailUrl":"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp","datePublished":"2023-02-13T11:53:32+00:00","dateModified":"2024-04-16T12:21:57+00:00","author":{"@id":"https:\/\/www.cic.vc\/#\/schema\/person\/01f4144d50b30601928e7ad98fcf6cbc"},"breadcrumb":{"@id":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#primaryimage","url":"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp","contentUrl":"https:\/\/www.cic.vc\/wp-content\/uploads\/2023\/04\/Pragmatic-_VVN5366-jpg.webp","width":1200,"height":1701},{"@type":"BreadcrumbList","@id":"https:\/\/www.cic.vc\/british-semiconductor-bosses-threaten-to-move-overseas-as-u-s-and-eu-splurge-on-chips\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.cic.vc\/"},{"@type":"ListItem","position":2,"name":"British semiconductor bosses threaten to move overseas as U.S. and EU splurge on chips"}]},{"@type":"WebSite","@id":"https:\/\/www.cic.vc\/#website","url":"https:\/\/www.cic.vc\/","name":"Cambridge Innovation Capital","description":"We enable visionaries to build global, category-leading companies.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.cic.vc\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/www.cic.vc\/#\/schema\/person\/01f4144d50b30601928e7ad98fcf6cbc","name":"Lewis Harrison-Pinder","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.cic.vc\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f8cbba69da3995ffe9ee74c57f0a6637?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f8cbba69da3995ffe9ee74c57f0a6637?s=96&d=mm&r=g","caption":"Lewis Harrison-Pinder"},"url":"https:\/\/www.cic.vc\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/posts\/1520"}],"collection":[{"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/comments?post=1520"}],"version-history":[{"count":3,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/posts\/1520\/revisions"}],"predecessor-version":[{"id":6801,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/posts\/1520\/revisions\/6801"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/media\/1915"}],"wp:attachment":[{"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/media?parent=1520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/categories?post=1520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cic.vc\/wp-json\/wp\/v2\/tags?post=1520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}